Pakistan LNG Limited (PLL), a government subsidiary responsible for procuring liquefied natural gas (LNG) from the international market, has announced its intention to secure an LNG cargo for January. The tender, released on Monday, specifies the requirement for one cargo on a delivered-ex-ship (DES) basis destined for Port Qasim in Karachi, with the delivery windows set for January 8-9. The tender is scheduled to close on November 24.
As mandated by the Pakistan government, PLL plays a crucial role in the import and sale of natural gas, LNG, and re-gasified LNG. The organization manages the entire supply chain of LNG, procuring it from global markets and making onward arrangements for gas supply to end users.
Given Pakistan’s reliance on gas for power generation, the country has encountered challenges in securing spot cargoes of LNG, particularly after a surge in global prices following Russia’s invasion of Ukraine last year, resulting in widespread power outages. In September, PLL had issued a tender seeking two LNG cargoes for December.
It’s worth noting that PLL faced difficulties earlier in the year when it failed to secure offers for six cargoes on a DES basis for delivery to Port Qasim in October and December.
Pakistan currently has two long-term LNG supply deals with Qatar, one signed in 2016 for 3.75 million metric tons annually and another signed in 2021 for 3 million metric tons per year. Additionally, there is an annual portfolio contract with ENI for 0.75 million metric tons.
In 2022, Pakistan’s LNG imports saw a decline to 6.93 million metric tons compared to 8.23 million metric tons in 2021, according to data from Kpler, a data analytics group.
Pakistan Seeks January LNG Cargo Amid Power Woes
