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Islamabad [Pakistan]Aug 7 (ANI): Pakistan is seeking a six-year liquefied natural gas (LNG) supply contract from an international trading company by issuing a two-part tender seeking bid prices amid a severe energy crisis.
Pakistan will face a severe energy crisis in the coming months without proper LNG supply for power generation, fuel industry and household consumption.
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Last month, GUNVOR’s five-year LNG terms agreement with Pakistan LNG Limited (PLL) expired. Now, the country’s wholly-owned company has issued a six-year term agreement tender.
International LNG suppliers are inviting bids from international LNG suppliers on a delivery off-board (DES) basis at Karachi’s Kasim port, international news reports said.
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According to the announcement, if Pakistan wins the bid, it will buy 72 LNG cargoes within six years, which means 1 vessel with 140,000 cubic meters of LNG per month.
The ongoing Russian-Ukrainian war, emergency gas purchases by European countries and continued disruptions to global energy supplies due to the COVID-19 pandemic over the past two years have led to a surge in LNG prices, making it difficult for a fiscally doomed country like Pakistan. Buy natural gas cargoes at affordable prices.
Citing a senior Energy Department official, PLL has issued a two-part tender, according to International News.
According to the first part of the tender, which is only for 2023, from December 2022 to December 2023, 12 LNG cargoes will be delivered to Pakistan, one per month.
According to the International News, under the second part, Pakistan will seek 60 LNG cargoes – one per month – over a five-year period from January 2024 to December 2028.
Currently, Pakistan relies on LNG cargoes under long-term agreements. Under a 15-year agreement, it will receive six cargoes per month from Qatar at 13.37%, and two more cargoes from Qatar at 10.2% Brent under a 10-year contract, and Get 1 shipment from Qatar for 15 years. ENI reached an agreement at 12.14 for Brent crude oil.
Pakistan is likely to be the country hardest hit by the ongoing global LNG supply crunch.
As a result, the Sheikh Baz Sharif-led government has limited options to address the issue, including buying gas at high prices or in the sports market; maximizing the use of other fuels for power generation or facing more load shedding in the coming months. Several cities in Pakistan, including Lahore and Karachi, face load shedding of as much as 10-18 hours per day. (ANI)
(This is an unedited and auto-generated story from the Syndicated News feed, the body of the content may not have been modified or edited by LatestLY staff)
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