Pakistan’s PLL purchases 3 cargoes on spot market

State-run Pakistan LNG Limited (PLL) has bought three cargoes on the spot market for the first time in over two years, local media Dawn reported on April 23.

The cargoes of the super-chilled fuel were secured at prices between $17.997 to $18.88 per million British thermal units (mmBtu). The cargoes are slated to be delivered between April 27 and May 8.

For the period of April 27-30 French supermajor TotalEnergies had the winning bid of $18.88 per mmBtu. During the period of May 1-7 Vitol Bahrain had the lowest bid of $18.54. For the third window from May 8-14, Oman’s state-owned OQ Trading secured the lowest bid of $17.99 per mmBtu.

Each cargo will hold 140,000 cubic metres of LNG delivered ex-ship. Each cargo will provide about 100 mn cubic feet (2.8mn cubic metres) per day of LNG.

The successful bids come just one day after PLL issued an urgent tender for three LNG cargoes. The tender was the first issued by PLL since December 2023. A total of four bids were received with three being declared successful.

In mid-April, Pakistan’s Power Division approached the country’s Petroleum Division for increased supplies of LNG in order to keep electricity on during the country’s peak summer period and temperatures climbing.

In total, the Power Division asked for about 400mn cubic feet (11.3mn cubic metres) of gas with energy supply short by over 4,500 MW during peak, highlighting the country’s desperate power crunch amid surging demand in peak season.

Pakistan has been grappling with six to seven hours of loadshedding, significantly curtailing industrial production.

With Pakistan heavily reliant on LNG from Qatar, which is currently sidelined from the market with the Strait of Hormuz blocked by Iran, Pakistan is one of the most vulnerable buyers or the super-cooled gas along with Bangladesh.