PLL's tender for a Sept 12-16 cargo drew zero bids, after two earlier September tenders were scrapped over prices above USD 26 per MMBtu
PLL invited bids from international suppliers for one cargo with delivery scheduled between September 12 and 16
Pakistan has failed for the third time this month to secure a liquefied natural gas cargo for power generation. No international supplier submitted a bid for a cargo scheduled for delivery from September 12 to 16, according to sources at Pakistan LNG Ltd.
Pakistan LNG Ltd, or PLL, invited bids from international suppliers for one cargo with delivery scheduled between September 12 and 16. The deadline for submitting bids was September 8, but no offers arrived by that date. The failure follows two earlier tenders this month that the government cancelled after receiving bids it judged too expensive.
For a cargo scheduled for delivery from September 4 to 8, PLL received a single bid at USD 26.96 per million British thermal units (MMBtu). The tender was cancelled because of the high price. PLL also cancelled a separate tender for a cargo due between September 8 and 12, after receiving two bids priced at USD 26.71 and USD 26.98 per MMBtu.
The repeated failure to secure cargoes comes as Pakistan seeks LNG supplies for electricity generation, and points to the country's ongoing struggle to obtain spot LNG at affordable prices. With no bids received for the September 12-16 window, PLL will need to explore other options to meet the country's LNG requirements, particularly if domestic gas supplies fall short of power-sector demand.
Pakistan relies on imported LNG to supplement its domestic natural gas supply, with the fuel playing an important role in electricity generation during periods of high demand. The government has faced pressure in recent months to contain the cost of imported fuel, since expensive LNG cargoes raise power-generation costs and add further strain to the country's energy sector.
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