ISLAMABAD: State-run Pakistan LNG Ltd (PLL) on Monday awarded a contract to OQ Trading —an Oman subsidy — to deliver an LNG cargo in the second week of January at a post-bidding negotiated price of $17.95 per million British thermal unit (mmBtu) to minimise peak winter gas shortage.

Earlier, the PLL had received four international bids against its urgent tender. OQ Trading was the lowest at $18.46 per unit, for the supply of a liquefied natural gas (LNG) cargo.

On the other hand, however, Azerbaijan’s state run Socar separately offered to provide a cargo at $17.96 per mmBtu under G2G arrangement.

Informed sources said the PLL shared Socar’s offer with the OQ Trading for price matching which agreed to deliver the cargo at $17.95 per mmBtu instead of its original bid price of $18.46. These sources said Socar was agitating the matter at the government forums.

However, even the $17.95 per mmBtu price is at a premium given Pakistan’s credit risk as the highest spot price for January has not gone beyond $17 per unit so far.

Tender for wheat import

Meanwhile, the Trading Corporation of Pakistan has issued another international tender for import of 110,000 tonnes of wheat. The last date for submission of bids is Dec 27.

Last month, the ECC approved import of 1m tonnes of wheat after the authorities estimated the total availability at 29.8m tonnes, leaving a shortfall of 2.4m tonnes as per strategic reserve requirements.

Published in Dawn, November 28th, 2023