Pakistan LNG Limited (PLL) has awarded a spot liquefied natural gas (LNG) cargo tender to OQ Trading, according to a source familiar with the matter.
The tender, open to bids from OQ Trading, QatarEnergy Trading, Trafigura, and Vitol, saw OQ Trading submitting the lowest bid.
OQ, formerly known as Oman Oil Company, is an energy investment company headquartered in Muscat, Oman. It is a wholly-owned subsidiary of the Government of Oman through the Oman Investment Authority.
The state-owned PLL, responsible for the procurement and sale of natural gas, LNG, and re-gasified LNG on behalf of the Pakistan government, issued the tender last week. The LNG cargo is scheduled for delivery to Port Qasim, Karachi, between January 8-9.
PLL manages the entire LNG supply chain, procuring LNG from international markets and arranging onward supply to end-users.
Pakistan, heavily reliant on gas for power generation, has faced challenges in securing spot LNG cargoes, especially after global prices surged following Russia’s invasion of Ukraine last year, contributing to widespread power outages.
In a similar tender issued in September, PLL awarded two LNG cargoes for December delivery to commodities trader Vitol. However, in June, PLL encountered difficulties in securing offers for six cargoes for October and December delivery to Port Qasim.
It is notable that Pakistan maintains two long-term LNG supply agreements with Qatar, one signed in 2016 for 3.75 million metric tons annually and another signed in 2021 for 3 million metric tons annually. Additionally, there is an annual portfolio contract with ENI for 0.75 million metric tons.
