KARACHI: Pakistan State Oil (PSO) has invited bids for the supply of one cargo of liquefied natural gas (LNG) to be delivered on April 15-16, and three consignments of motor gasoline for the month of March amid higher anticipated demand o fuel products in summers.
Analysts anticipate higher demand of fuel products owing to increasing import-export activities, higher vehicle sales, and demand from the power sector.
Pakistan LNG Limited has already invited bids for three LNG cargos of 140,000 cubic meters each for the month of April, 2021.
Asian spot prices of liquefied natural gas (LNG) fell for a second straight week to their lowest in nearly two months amid warmer weather forecasts and higher supplies.
The average LNG price for March delivery into Northeast Asia LNG-AS was estimated at about $8.40/mmbtu, down 50 cents from the previous week. This is the lowest that spot prices have hit since early-December.
Earlier, this week Pakistan received significantly cheaper bids for three cargoes of liquefied natural gas (LNG) to be delivered in March under an urgent tendering process.
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). Delivery for March 24-25 is priced at $6.86/mmbtu i.e 12.7 percent of Brent. The average price of March cargoes is over 30 percent lower than the average bids received in an earlier tender issued for March supplies, but was scrapped.
The motor gasoline consignments of 45,000MT each are to be delivered during March 11-16 window, March 16-26 and March 26-31, 2021.
According to analysts, fuel oil consumption could rise by as much as 20 percent by the end of the current fiscal year as the gas supply situation was expected to tighter further, while the industrial sector’s demand for power was rising amid a rush to meet international orders which oil consumption was set to accelerate in February onwards.
Oil sales during first half of the current fiscal year (1HFY21) have increased 12 percent to clock in at 9.8 million tons.
This volumetric growth during 1HFY21 is primarily accredited to the escalating trade activities, higher vehicles on road, and increasing power demand.