Pakistan to issue two LNG tenders in October 2016

According to Reuters, the head of Pakistan’s state-owned LNG company has announced plans to issue two international tenders in October 2016 for 750 000 tpy of LNG each.

The head of Pakistan LNG, Adnan Gilani, reportedly said that, although the specifics of the tenders are being finalised, it is likely that they will be a five-year and 15-year offer, and a possible spot purchase. He added that a number of firms are interested in the tenders, including companies from the US, Azerbaijan, Qatar, Russia, Malaysia and Australia.

Gilani said: “We had over half a dozen participants bidding in our last international tender and expect more than twice that number this time around.”

Gilani reportedly added that Pakistan would negotiate separate government-to-government LNG deals, saying: “We have interest from more than five sovereigns to supply LNG to Pakistan.”

He also said an incoming worldwide LNG production glut means that the country is expecting bids from international companies to be significantly lower than the bids by Gunvor (the winner of the last international tender). Despite the fact that Gilani would not discuss financial details, traders report that, for the 60 cargo supply tender from 2016 – 2020, Gunvor offered a delivered price of 13.37% of a barrel of crude oil.

Gilani said: “We expect a substantial price decline because of the global supply glut and new production coming on line in the short-term.”

Edited from various sources by David Rowlands

Read the article online at: https://www.lngindustry.com/regasification/07092016/pakistan-to-issue-two-lng-tenders-in-october-2016-3015/