Pakistan Opens Tender to Buy LNG Cargo from the international spot market. State-run Pakistan LNG Limited (PLL) wants 140,000 cubic metres of LNG delivered at Port Qasim between September 4 and September 8. The move comes as a shortage of gas for power plants keeps causing hours-long outages across the country, with the government apologising last week over the crisis.
Why This Cargo Is Needed Now
Pakistan has been short on re-gasified liquefied natural gas (RLNG), the fuel many of the country's power plants run on. That shortage has been a major reason behind the extended electricity outages people have faced recently. Officials have already acknowledged the problem publicly, with the power minister apologising for night-time loadshedding just days before this tender went out.
How the Tender Works
PLL floated the tender on August 30. Here's the timeline and terms international suppliers are working with:
Bid deadline: 2:00 PM on September 1
Technical bids opened: 2:30 PM the same day
Commercial bids opened: 3:30 PM, but only from suppliers who pass the technical review
Contract awarded: Same day, with bids staying valid until 10:00 PM
Delivery basis: Delivered Ex-Ship (DES), at the Pakistan Gas Port Consortium terminal, Port Qasim
Cargo size: 140,000 cubic metres, with a tolerance of plus or minus 5%
To qualify, suppliers must have delivered at least eight LNG cargoes in the past 24 months. They also need to submit a $300,000 bid bond, and the winning supplier will have to provide a performance guarantee worth 10% of the total contract value. PLL will pick whichever qualified bidder offers the lowest price per million British thermal units (MMBtu).
