For the first time in almost a year, Pakistan has released two tenders seeking spot liquefied natural gas (LNG) cargoes while announcing a contract with Azerbaijan for a monthly supply of one LNG cargo.
Facing a scarcity of foreign exchange to finance imports and reliant on gas for power generation, Pakistan found it challenging to secure spot LNG cargoes after global prices skyrocketed due to Russia’s invasion of Ukraine last year. This led to widespread power shortages in the country. However, Asian spot LNG prices have dropped from their peak of $70/mmBtu in August to below $10.
Government subsidiary Pakistan LNG, responsible for sourcing LNG internationally, has posted one tender online for six cargoes to be delivered to Port Qasim in Karachi in October and December. These deliveries are scheduled for specific windows in October and December, and the tender is set to close on June 20.
Pakistan LNG’s second tender, closing on July 14, is also for Port Qasim deliveries, requesting three cargoes with delivery windows in January and February. A similar tender for 10 spot cargoes in July 2022 failed to receive any offers.
Meanwhile, Pakistan’s Petroleum Minister Musadik Malik confirmed at a news conference that Azerbaijan will supply a reduced price of monthly LNG cargo to Pakistan. Although specific details were not disclosed, Malik confirmed that a contract with Azerbaijan had been signed and is due to commence shortly.
Pakistan has two ongoing long-term supply agreements with Qatar and an annual contract with ENI. In 2022, the country’s LNG imports dropped to 6.93 million metric tons from 8.23 million metric tons the previous year, as per data from Kepler.
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