Daily Times

In order to avert the looming gas crisis, the Pakistan LNG Limited (PLL) has decided to procure an LNG cargo at the highest ever price of $30.6 per million British thermal units (mmbtu).

Sources privy to the matter said that the state-owned company, PLL, had issued an emergency tender on November 2, seeking bids for spot cargoes after two LNG trading companies, ENI and GUNVOR, backed out of providing two long term cargoes due to be delivered on November 19-20 and November 26-27.

The PLL received five bids with higher prices ranging from $29.8966 to $31.0566 per mmbtu from international LNG trading companies for two spot LNG cargoes to be delivered in the last 11 days of the current month, the sources added.

The PLL has decided to buy an LNG cargo at $30.6 mmbtu, while efforts are underway to buy one more LNG cargo to meet the gas demand in the country.

Meanwhile, efforts are also underway to convince the LNG companies who have backed out of the agreements signed with PLL to review their decision in the face of skyrocketing gas prices in the international market, the sources added.

A day earlier, the Pakistan LNG Limited (PLL) had received five expensive bids for emergency LNG cargoes to avert the looming gas crisis in the country. According to the details PLL had received bids with higher prices ranging from $29.8966 to $31.0566 per mmbtu from international LNG trading companies for two spot LNG cargoes.

The country had gotten the lowest bid for November 19-20 from Vitol Bahrain at $29.8966 per mmbtu and for November 26-27 from Qatar Petroleum Trading at $30.6500 per mmbtu. The PLL board had held a meeting, which lasted for hours, to decide if it was to purchase the LNG cargoes at the lowest bids, which are factually at a higher trajectory in terms of prices. The PLL top management, under direction from the Petroleum Division, was tight-lipped and not ready to share the decision.