Crisis-ridden Pakistan has reportedly been unsuccessful in acquiring liquified natural gas (LNG) from the spot market in its initial attempt in nearly a year. This failure is attributed to suppliers’ reluctance to respond to the financially strapped nation’s bid.
Speaking anonymously, traders informed the publication that no companies reacted to Pakistan LNG Limited’s (PLL) bid for procuring six shipments intended for October through December, which closed on Tuesday.
Previously, the publication reported that numerous international banks hesitated to acknowledge letters of credit from Pakistani institutions to procure LNG shipments. This hesitancy has made suppliers wary of offering cargo.
Pakistan’s challenges are mounting, with a $350 billion economy reeling from a declining currency, political instability, and an escalating risk of defaulting on its foreign debt. Further exacerbating the situation, the International Monetary Fund (IMF) has harshly criticized the federal government’s recently presented budget. This criticism signals potential difficulties in meeting the end-of-June deadline for fund disbursement.
The failure of Pakistan to secure gas purchases is likely to intensify energy shortages across the nation, leading to an increased frequency of blackouts and a limited fuel supply for industrial consumers.
Last year’s energy crisis, triggered by Russia’s invasion of Ukraine, significantly impacted Pakistan due to its heavy reliance on imports. Several tenders issued by Pakistan in the past year also failed to attract offers from suppliers.
