WASIM IQBAL

ISLAMABAD: Pakistan LNG Limited (PLL) has invited bids from international suppliers for the supply of six LNG cargoes for July-August on a delivered ex-ship (DES) basis at Port Qasim Karachi.

The first delivery window is from July 8-9, the second from July 18-20, the third from July 29-30, the fourth from August 8-9, the fifth from August 13-14 and sixth from August 23-24 for spot purchase. .

The bid will be opened on June 19, 2018. The cargoes will be delivered on a DES basis to Port Qasim, where two Pakistan’s LNG receiving facilities are located.

At present, the LNG prices have risen to their highest since 2014 as demand from China, India and South Korea has surged at this time of the year. Prices have climbed 32 percent since April when last spot purchase was completed by Pakistan. The April price was $9.60 per million British thermal unit (mmbtu) and are trading at around $10 per mmbtu at present. Pakistan completed last spot purchase in April for four cargoes.

An official of PLL said that fuel oil will not be completely displaced. LNG imports could exceed 1.8 Bcf per day by 2019, once the country’s third LNG terminal starts operating as most of the regasified LNG will be used to bridge the country’s existing gas deficit, he added.

He further said that operations at the new LNG power plants are not smooth and there’s potential delay to the start-up of several new LNG plants.

LNG imports to Pakistan during the first five months of 2018 increased by over 50 percent in comparison to last year.

Pakistan imported 568,000 tons of LNG in May 2018, representing an increase of 30% compared with May 2017. The country received nine cargoes, with seven delivered to the Engro Elengy (EE) terminal and two to the Pakistan Gas Port (PGP).

The third appointment under probe by NAB is of Adnan Gilani as the head of the Pakistan LNG Ltd (PLL). PLL deals with multi-billion-dollar LNG supplies and Gilani had been previously been working in the Prime Minister’s Inspection Commission. In a note, Secretary to ex-PM Nawaz Sharif, Fawad Hassan Fawad said Gilani did not have any experience and was not capable of being appointed as CEO of the LNG company. Therefore a summary seeking his promotion was rejected and he was selected as the chief operating officer (COO) of PLL.