ISLAMABAD: Pakistan LNG has received bids for only one of the two liquefied natural gas (LNG) cargoes it had sought through prompt tenders for delivery in March after long-term sellers were unable to deliver, a source familiar with the matter said.

Pakistan LNG did not receive any offers to import a cargo for March 2-3 delivery, the source said, adding QP Trading and ENOC had submitted bids to supply a cargo for March 10-11, the source said.

QP Trading, a unit of Qatar Petroleum, offered LNG at $25.12/million British thermal units (mmBtu), while ENOC quoted $26.1625/mmBTU, the source said.

The Ministry of Energy and Pakistan LNG did not immediately respond to Reuters requests for comment.

Eni and Gunvor, both long-term suppliers to Pakistan, were unable to deliver scheduled cargoes for March, an industry source told Reuters.

Eni confirmed it suffered disruptions in the LNG supply chain in Pakistan, “originated by a third-party supplier that defaulted in its supply obligations for unspecified reasons”.

It said it is evaluating all contractual remedies, including legal action, to preserve its rights.

Gunvor declined to comment.

Natural gas prices around the world soared late last year due to a combination of tightened supply, weaker renewable power generation and a strong growth in demand.

Asian spot LNG prices LNG-AS are hovering at $25/mmBtu but sentiment remains bullish on a colder weather outlook and uncertainty over European gas supply amid geopolitical tensions.

The United States and its European allies are set to announce fresh sanctions against Russia after President Vladimir Putin formally recognised two regions of Ukraine as independent.

Pakistan’s LNG demand is rising as local supply has steadily dwindled. It has a number of long-term contracts, including two with Qatar, the most recent signed last year with deliveries that began in late 2021.

Published in Dawn, February 23rd, 2022

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