Pakistan seeks bids for LNG cargoes to meet summer demand

Pakistan LNG Ltd has asked interested suppliers to submit bids by April 21 to supply LNG cargoes to meet demand for the summer season as the country grapples with frequent power outages, a government document said April 17.

The bids will be opened on the same day and the first cargo has been sought for the window of May 12-13, the second for May 17-18, a third one for May 27-28, a fourth for June 1-2, a fifth in June 2022 and a sixth cargo for June 16-17, the document said.

The demand for electricity rises significantly during Pakistan's summer that runs from May to July and consumers usually see load-shedding for eight to 12 hours per day during this period.

Power generation rose 11.1% to 8,088 GWh in February to cater to rising demand, compared to 7,281 GWh (10,835 MW) in the same month last year.

The rise in generation was due to higher generation from fuel oil, wind, coal and nuclear plants as the government tapped alternative sources to meet surging demand, data from the National Electric Power Regulatory Authority showed.

Coal accounted for 32%, hydel around 18%, RLNG for 15%, nuclear around 13%, gas 11% and fuel oil for 7% of the total power generation in February, according to the data.

RLNG prices lowered

Pakistan's Oil and Gas Regulatory Authority, or OGRA, announced a lower RLNG price for April for Sui Northern Gas Pipelines, with the price pegged at $15.62/mmbtu, down $0.19/mmbu month on month.

The RLNG price for Sui Southern Gas Company was $16.91/mmbtu in April, down $0.20/mmbtu month on month, the Authority said.

Prices of RLNG have been cut to boost LNG demand and reduce circular debt levels, which are not usually passed down the supply chain when changes in fuel import prices occur.

RLNG prices have also dropped because Qatar is supplying LNG to Pakistan on a Government-to-Government contract basis.

Pakistan has two agreements with Qatar for 15 years and 10 years basis at 13.37% and 10.2%, respectively, of Brent.