KARACHI: Pakistan LNG Limited (PLL) received considerably lower bids for three LNG cargoes for March in the range of 12.7 percent to 13.6 percent of Brent against the tender that closed on January 26, market sources informed.

With Brent trading at $54/bbl; cargo for March 11-12 and March 18-19 deliveries are priced at $7.34/mmbtu (13.6 percent of Brent), bith to be supplied by ENI. Delivery for March 24-25, to be supplied by Qatar Petroleum, is priced at $6.86/mmbtu i.e 12.7 percent of Brent.  The average price of the tree cargoes is 30 percent lower than the average bids received in the scrapped tender for March.

A similar tender that closed on January 15, received lowest offers in the range of 17.2 percent to 22.2 percent of Brent, while Brent was trading at $55.6/bbl. It was scrapped.

Keeping in view the decline in LNG prices globally, PLL had decided to scrap the tender for month of March that closed on January 15, and floated a fresh tender to secure lowest prices as it did in second round of fresh bids for the month of February.

PLL had received lower rates to procure three LNG cargoes on the spot for the month of March compared to bids received for February.

Three companies were declared successful for providing three cargos for March. ENI was to supply LNG cargo in the second week of March at 22.24 percent of Brent. Vitol Bahrain was to supply second and third cargoes at 17.81 percent and 17.19 percent of Brent, respectively.

Keeping in view the lower prices quoted by Qatar Petroleum trading for month of February, PLL had decided to retender to seek fresh bids for LNG cargoes for month of March.

It may be mentioned here traders had quoted prices close to 26 percent of Brent for month of February 2021 due to rise in demand in the world. However, all traders except Socar Trading had refused to provide LNG.

In the retendering process, PLL secured LNG cargo at 16.3 percent of Brent for February following dip in demand of LNG globally.