Qatar Petroleum Trading Company participates in Pakistan LNG tender for first time

ISLAMABAD/SINGAPORE: Qatar Petroleum's newly formed trading unit participated in a buy tender by Pakistan LNG for the supply of liquefied natural gas (LNG) for the first time, industry sources said on Friday.

Qatar Petroleum said in November that it had set up a trading unit, Qatar Petroleum Trading Company, which will be headquartered in Doha and aims to build a diversified global portfolio of LNG produced locally and internationally.

The parent company typically negotiates the supply of LNG to Pakistan on a government to government level, one of the sources familiar with the matter said, adding that this was the first time any Qatari company had participated in a Pakistan tender.

The trading unit, which signed its first contract in November to supply LNG to Singapore's Pavilion Energy, placed the lowest offers for three of six LNG cargoes sought by Pakistan for January delivery, a document of Pakistan LNG Ltd (PLL) showed.

There were no bids placed for delivery of three cargoes sought in the first half of January, which may push the country towards a re-tender to meet its rising gas needs. The lowest price offered was for a cargo to be delivered between Jan. 29 and Feb. 1, at 15.3209% of Brent crude - known as a slope rate, according to the document uploaded on PLL's website.

The lowest offers for two other cargoes were Brent crude slope rates of 17.3203%, for delivery over Jan. 20 to 21, and 17.3207%, for delivery over Jan. 26 to 27.

A source close to the process told Reuters that PLL might have to re-tender with wider specifications and a shorter bid validity period for the three cargoes it needs early January and which received no offers.