July, 14(Agencies) — Pakistan LNG Ltd (PLL) received a bid from commodities trader Trafigura for an LNG import tender at $23.47 per million British thermal units (mmBtu) to be delivered on January 3-4 and at $22.47/mmBtu for delivery February 23-24, a source said on Friday.
Pakistan issued two tenders in June, seeking spot liquefied natural gas (LNG) cargoes for the first time in nearly a year but did not receive any bids.
The bid from Trafigura is for Pakistan LNG’s second tender which closes on July 14.
Meanwhile, Bloomberg News reported that the shipments offered by Trafigura “are priced at roughly a 30% premium to current market prices, according to traders”.
“Typically, spot purchases of fuel would be sold at similar levels to market prices,” it said.
Bloomberg News report said that Pakistan won’t award the tender until July 31, and it still isn’t clear if the country will follow through with buying the fuel. “Credit risk had been a barrier stopping LNG suppliers from selling spot shipments to the nation,” said the report.
The development comes days after Pakistan managed to secure a $3 billion Stand-By Arrangement with the International Monetary Fund (IMF).
Dependent on gas for power generation, the country has struggled to procure spot cargoes of LNG after global prices elevated last year following Russia’s invasion of Ukraine.
Pakistan Rupee Exchange Rate