In a new development, the government-owned company Pakistan LNG Limited (PLL) has again asked the private sector to import LNG for December, January and February amid high spot prices by using its unutilized re-gasification capacity in the range of 240-385 confirming the bitter fact that the country is going to have a massive shortfall of gas.
This is the second time that the private sector has been asked to import LNG as the PLL earlier in September 2021 had invited bids from private parties to import LNG for the month of November 2021, but the private sector didn’t come forward because of the huge spike in LNG prices in the global market.
The government is under tremendous stress in the wake of backing out by two LNG trading companies ENI and GUNVOR and no response it obtained from the suppliers against the PLL’s tender seeking eight LNG spot cargoes four each for December and January. Now the government has arranged 10 cargoes for December and the same number is also for January which is not enough to cater to energy needs of the country.
The local gas production has climbed down to just 2.8 bcfd and the government will not be able to import of 1.2 bcfd in December and January against the country’s total demand during the peak winter months which has swelled to 5.5 bcfd.
Now the PLL again offered the private sector to use its utilized capacity at a time when the massive price rally of LNG is under way in the international market. The private sector is of the view that such offers should have been extended by the PLL some 3-4 months before.
The PLL says it has unutilized capacity of 385 mmcfd in the month of December, 240 mmcfd in January and 375 in February which is why under the direction of the federal government, it has invited private parties to import LNG into the country, keeping in view the eligibility criteria and OGRA determined charges for the relevant month.
“As of today, the LNG spot price has somewhat tumbled to $28 per MMBTU which is also still at higher side and how can private sector import referring to the no response from the LNG suppliers the PLL got in response to its earlier tender seeking eight LNG cargoes for December and January,” private sector sources told The News.
