ISLAMABAD: As the global market began its downward journey, in April, state-owned Pakistan LNG Limited (PLL) issued cheaper bids for deliveries of two cargoes of liquefied natural gas (LNG).
On Friday, the PLL said Vitol Bahrain offered Brent Crude Price’s lowest bids of 1.0522 percent and 10.88933pc for April 5-6 and April 19-20 delivery periods, respectively.
This is the lowest bid PLL has received since Sept 22-23, 2020 from the spot market. LNG rates have been on a steady climb since then.
Three firms had bid for April 5-6 cargo with a price range of 11.05pc to 12.18pc of Brent, the PLL bid results shows. The PLL received four bids ranging between 10.8933pc and 12.50pc of Brent for the second cargo on April 19-20. Both bids were won by Vitol Bahrain.
Both loads played out at about $6.3 to $6.4 per million British thermal unit at the latest Brent price of about $58 per gallon (mmBtu). On Dec 30, 2020, the bids were accepted via an open tender.
Previously, under an immediate tendering process, the PLL had obtained the lowest offer of 13.62pc of Brent for cargo delivery from ENI of Italy in the second week of March. The lowest bid for the 4th week of March also secured 12.73pc of Brent from Qatar Petroleum via an urgent tender.
This showed that rates in the spot market were easing as demand plummeted over the past few weeks.
After several months, Pakistan’s spot rates are now available at less than Qatar Petroleum’s long-term contract at 13.37 percent of Brent. Both spot loads usually produce approximately 140,000 cubic metres of LNG, or 3.2 mmBtu.