SINGAPORE: Pakistan LNG Limited (PLL) has awarded a tender to OQ Trading for a spot liquefied natural gas (LNG) cargo to be delivered between January 8-9, a source with knowledge of the matter said on Monday.
PLL had received bids from OQ Trading, QatarEnergy Trading, Trafigura and Vitol for its latest tender, in which OQ Trading made the lowest bid.
The state-owned company, which procures LNG from the international market, issued the tender last week and was seeking the cargo for delivery to Port Qasim, Karachi, from January 8 to 9.
PLL has been mandated by the Pakistan government to import and sell natural gas, LNG and re-gasified LNG.
It procures LNG from international markets and enters into onward arrangements for the supply of gas to end users, managing the whole supply chain of LNG.
Dependent on gas for power generation, Pakistan has struggled to procure spot cargoes of LNG after global prices spiked last year following Russia’s invasion of Ukraine, leaving it to face widespread power outages.
Earlier in September, PLL issued a tender seeking two LNG cargoes for the month of December. PLL awarded the tender to commodities trader Vitol.
In June, PLL failed to secure offers for six cargoes on a DES basis for October and December delivery to Port Qasim.
Pakistan has two long-term supply deals with Qatar, one signed in 2016 for 3.75 million metric tons of LNG a year, and another signed in 2021 for 3 million metric tons a year.
It also has an annual portfolio contract with ENI for 0.75 million metric tons a year.
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