PSO to buy priciest LNG cargo amid tight global market

Web DeskWeb Editor

31st Aug, 2021. 02:20 pm

KARACHI: The Pakistan State Oil (PSO) procured a spot shipment for September 26 and 27, 2021 delivery at the equivalent of $17.85/mmbtu. Vitol will supply the cargo.

According to the PSO, Vitol offered to supply LNG at the rate of 24.5456 per cent of Brent, which is equivalent to $17.85/mmbtu.

Pakistan’s previous record-high LNG cargo was for late-August delivery at $15.93/mmbtu.

Moreover, PSO decided not to award a separate tender seeking a September 24 and 25, 2021 delivery cargo that closed on August 30. Vitol gave the lowest offer at 27.5366 per cent linked to Brent crude oil, which is equivalent to $20/mmbtu.

The government has ordered PSO and Pakistan LNG Ltd (PLL) to make public disclosure of bidding results in a timely manner to ensure transparency.

“Both the entities are advised to publish the results of the procurement decisions within 24 hours on their respective websites,” Energy Minister Hammad Azhar directed to the two state-owned entities involved in the procurement of LNG.

In separate letters, the minister also asked the chairmen of the board of directors of the two firms to themselves deliberate upon and decide the matter of procurement of spot RLNG (regasified liquefied natural gas) cargoes “to enhance transparency and further improve processes”.

The minister said, “These instructions are meant to ensure professional oversight by the respective BoDs on such vital issues, as well as to ensure timely release of procurement information, which is mandatory for ensuring market efficiency, as well as public disclosure.”

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