Pakistan issues tender to secure LNG cargo for January

Pakistan LNG Limited (PLL), a government subsidiary responsible for procuring liquefied natural gas (LNG) from the international market, has released a tender seeking one LNG cargo on a delivered-ex-ship (DES) basis.

The cargo is intended for delivery to Port Qasim in Karachi in January 2024, with the specified delivery windows being January 8-9. The tender, advertised on Monday, is set to close on November 24.

PLL is mandated by the government to import and sell natural gas, LNG, and re-gasified LNG. It manages the entire supply chain of LNG, procuring it from international markets and arranging onward supply to end users.

Given Pakistan's reliance on gas for power generation, the country has faced challenges in procuring spot cargoes of LNG, particularly after global prices surged last year following Russia's invasion of Ukraine, leading to widespread power outages.

In September, PLL issued a tender seeking two LNG cargoes for December. Earlier, in June, PLL encountered difficulties in securing offers for six cargoes on a DES basis for October and December delivery to Port Qasim.

Pakistan's LNG imports in 2022 decreased to 6.93 million metric tons from 8.23 million metric tons in 2021.

The South Asian nation currently holds two long-term supply agreements with Qatar, one signed in 2016 for 3.75 million metric tons of LNG annually and another signed in 2021 for 3 million metric tons per year. It also has an annual portfolio contract with ENI for 0.75 million metric tons a year.