Pakistan is planning to import six new liquefied natural gas (LNG) cargoes of 140,000 cubic meters each for January 2021 as the demand for energy is expected to rise in the winter.
Pakistan LNG Limited (PLL) has invited bids for the import of the LNG cargoes to be delivered in January and issued a tender in October for six LNG cargoes to be delivered next month.
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According to market analysts, Pakistan’s spot LNG demand for the winter has outstripped some of the largest end-users in North Asia. They stated that the state-run firms are poised to procure 18 spot cargoes for delivery between November 2020 and January 2021 amid an uptick in the demand for gas and the dwindling domestic output.
Additionally, Pakistan has increased spot buying of LNG against the increasing demand for gas in the winter.
An advertisement by PLL shows that it is seeking cargoes of 140,000 cubic meters each in six delivery windows with 10 December as the deadline for the submission of bids.
- The first LNG cargo will be delivered between 8 and 11 January
- The second between 12 and 14 January
- The third between 15 and 18 January
- The fourth between 20 and 21 January
- The fifth between 26 and 27 January
- The sixth cargo will be delivered between 29 January and 1 February
PLL has been mandated by the Government of Pakistan to carry out the business of importing, buying, storing, supplying, distributing, transporting, transmitting, processing, measuring, metering, and selling of natural gas, LNG, and re-gasified LNG. In this capacity, PLL will procure LNG from international markets and enter onward arrangements for the supply of gas to end-users, thereby managing the entire supply chain of LNG from the procurement to the end-users.
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December and January see the largest spike in demand for gas in Pakistan but the demand-supply shortfall will be greater due to higher consumption and diminishing indigenous supply this year. However, the gap between its demand and supply can be bridged by importing LNG to the country.
Pakistan had previously inked a long-term agreement with Qatar for the supply of LNG, and the incumbent government has been active in the spot market since last August mainly due to a surge in the demand of gas.
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