BAFL 44.70 Increased By ▲ 1.94 (4.54%)
BIPL 20.88 Decreased By ▼ -0.10 (-0.48%)
BOP 5.17 Increased By ▲ 0.13 (2.58%)
CNERGY 4.42 Increased By ▲ 0.06 (1.38%)
DFML 15.75 Decreased By ▼ -0.05 (-0.32%)
DGKC 70.25 Increased By ▲ 1.61 (2.35%)
FABL 27.75 Decreased By ▼ -0.05 (-0.18%)
FCCL 17.28 Decreased By ▼ -0.02 (-0.12%)
FFL 8.67 Decreased By ▼ -0.13 (-1.48%)
GGL 13.14 Increased By ▲ 0.17 (1.31%)
HBL 113.26 Increased By ▲ 4.23 (3.88%)
HUBC 121.80 Increased By ▲ 4.56 (3.89%)
HUMNL 7.91 Increased By ▲ 0.06 (0.76%)
KEL 3.34 Increased By ▲ 0.02 (0.6%)
LOTCHEM 27.91 Decreased By ▼ -0.24 (-0.85%)
MLCF 39.05 Decreased By ▼ -0.15 (-0.38%)
OGDC 108.04 Decreased By ▼ -0.11 (-0.1%)
PAEL 18.24 Decreased By ▼ -0.01 (-0.05%)
PIBTL 5.70 Decreased By ▼ -0.10 (-1.72%)
PIOC 109.31 Increased By ▲ 0.41 (0.38%)
PPL 92.15 Increased By ▲ 0.65 (0.71%)
PRL 25.08 Increased By ▲ 0.08 (0.32%)
SILK 1.05 Increased By ▲ 0.01 (0.96%)
SNGP 63.66 Increased By ▲ 1.96 (3.18%)
SSGC 12.27 Increased By ▲ 0.08 (0.66%)
TELE 8.87 Increased By ▲ 0.09 (1.03%)
TPLP 13.86 Decreased By ▼ -0.04 (-0.29%)
TRG 85.60 Increased By ▲ 1.19 (1.41%)
UNITY 26.04 Increased By ▲ 0.79 (3.13%)
WTL 1.58 Increased By ▲ 0.06 (3.95%)
BR100 6,242 Increased By 133.2 (2.18%)
BR30 21,739 Increased By 476.6 (2.24%)
KSE100 60,730 Increased By 918.9 (1.54%)
KSE30 20,240 Increased By 379.1 (1.91%)

Power crisis: Pakistan's request for LNG fails, not a single offer received

  • PLL had invited bids for 10 LNG cargoes from international suppliers during the July-August-September window
Published July 7, 2022

The ongoing energy crisis in Pakistan is likely to continue after the country’s purchaser of Liquefied Natural Gas (LNG) failed to receive a single offer for its latest tender, reported Bloomberg on Thursday.

Just days ago, Pakistan LNG Limited (PLL), a wholly-owned subsidiary of Government Holdings Private Limited (GHPL), invited bids for ten LNG cargoes from international suppliers during the July-August-September window.

Suppliers were asked to submit bids by July 7. As per PLL documents, each cargo was to have a volumetric quantity of 140,000m3.

However, in an unusual development, the state-owned LNG purchaser did not receive a single offer in a $1 billion LNG purchase tender, said the Bloomberg report, citing traders with knowledge of the matter.

“That illustrates both the extent of the global fuel shortage, and also the reluctance of suppliers to sell to a country in the depths of an economic crisis,” said the report.

Global supply-chain disruptions owing to the Russia-Ukraine war have led prices of energy commodities including LNG to skyrocket.

On the other hand, Pakistan is dealing with fuel shortages, particularly in its power sector, as electricity consumption spikes in the summer months, leading to power outages across the country.

In a presser on Wednesday, Federal Minister for Power Khurram Dastgir said that 969MW Neelum-Jhelum hydropower project was closed due to malfunction and the reasons of the plant’s closure are being determined.

Moreover, the government has also decided to form an inquiry commission to determine the causes of the energy crisis in the country.

Last month, Pakistan LNG Ltd (PLL) received a single bid from Qatar Energy at $39.80/mmbtu for an LNG import tender seeking a cargo in the July 30-31 window. It received no bids for three other deliveries sought in July.

Pakistan had sought four cargoes from international suppliers during the windows of July 3-4, 8-9, 25-26 and 30-31.

However, Prime Minister Shehbaz Sharif last week informed that the country scrapped the LNG tender for July to save the country's foreign exchange reserves.

Pakistan's foreign exchange reserves did receive a boost last week, as the country’s total liquid foreign exchange reserves rose sharply by some $2 billion, supported by the arrival of Chinese inflows.

During the week ended on 24 June, 2022, the SBP received proceeds of Chinese Development Bank loan amounting to RMB 15 billion, which was equal to $2.3 billion. After accounting for external debt repayment, SBP’s reserves increased by $2.071 billion to $10.309 million, up from $8.238 billion a week earlier.


Comments are closed.

Zia Ullah Khan Jul 07, 2022 05:44pm
Not to worry. The "competent " government will sell the resulting load shedding and production losses as " difficult decisions ".
thumb_up Recommended (0)

Power crisis: Pakistan's request for LNG fails, not a single offer received

Inter-bank: rupee registers marginal improvement against US dollar

New record at PSX: KSE-100 in unchartered territory, crosses 60,000

Open-market: rupee remains stable against the US dollar

Cipher case: trial to continue in Adiala Jail in open court, rules judge

ADB approves $180mn to improve Punjab’s water supply & waste management

More people at risk of death from disease than bombings in Gaza: WHO

Govt explains magnitude of SOE burden

MoUs worth multi-billion dollars signed with UAE

FBR informs IMF of its plan to register 1m non-filers

Exemption from IP gas line sanctions: Govt using diplomatic channels to engage with US