SINGAPORE: Pakistan LNG has received offers from 12 companies for a tender seeking eight liquefied natural gas (LNG) cargoes for delivery from late-April to June, according to a document posted on the company's website.
This follows changes the company implemented on its tender system, making it more attractive to sellers, sources said.
The state-owned company was seeking the cargoes on a delivered ex-ship (DES) basis for delivery into Port Qasim, Karachi, in Pakistan, in a tender that closed on Tuesday.
Qatar Petroleum Trading and PetroChina offered the lowest price for two cargoes each, while Italy's Eni offered the lowest price for three cargoes. Vitol offered the lowest price for one cargo.
The lowest prices offered ranged from $6.70 per million British thermal units (mmBtu) to $6.9250 per mmBtu. Other companies which participated in the tender are BB Energy, Gunvor Singapore, BP Singapore, DXT Commodities, Trafigura, POSCO Internat-ional, Total Gas & Power and Emirates National Oil Company (ENOC).
Pakistan LNG typically asks for prices to be offered as a percentage to Brent oil prices, as is common for the majority of LNG long-term contracts in Asia, but requested for a fixed price for this tender.
The company received an exemption earlier this month from Public Procurement Regulatory Authority (PPRA) rules, which require a 30-day period between announcing of bids and awarding a contract, Reuters reported last week. The rules also had a required validity period from when the tender closed to being awarded of about 10-15 days, which is longer than the industry standard of about one to two days. Pakistan LNG can now conduct tenders in a shorter time, with a shorter validity period of about two days.
Comments
Comments are closed for this article.