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muhammadhafeezmalik

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Pakistan has received lowest bids for two cargoes of liquefied natural gas (LNG) of 140,000 meters each from multinational commodity trading company Gunvor Singapore, it was learnt on Friday.

1602574204854.png


Gunvor Singapore placed lowest bids at 14.2277 percent for 8-9 November and at 13.8377 percent for 18-19 November in response to an international tender last month by state-owned Pakistan LNG Limited (PLL), according to an official document seen by The News. Other companies bid for 8-9 November window were Trafiguara (14.3338 percent) and PetroChina International (15.3152 percent).

For the second window, DXT Trading Company bid at 14.4610 percent, Trafiguara PTE (14.3338 percent) and POSCO International (16.0444 percent). PLL had sought tenders from foreign suppliers to supply three cargoes of approximately 420,000 cubic metres of LNG for November.

PLL invited bids from international suppliers for supply of three LNG cargoes on delivered ex-ship basis at Port Qasim. Cargo of 140,000 cubic meters each is required to be delivered on November 8-9, November 15-16, and November 18-19.

PLL resumed spot buying of LNG after six-month pause in July as energy demand is ramping up with easing lockdown.

PLL were mandated by the government to carry out the business of the import, purifying, buying, storing, supplying, distributing, transporting, transmitting, processing, measuring, metering and selling of natural gas, LNG, re-gasified LNG, to meet the country’s gas requirements.

PLL procures LNG from international markets and enters into onward arrangements for supply of gas to the end user, thereby managing the whole supply chain of LNG from procurement to end user gas sale agreements.

Pakistan currently has two operational LNG terminals – Elengy Terminal and Gasport Pakistan Ltd. having a capacity of 600 million metric cubic feet per day each.

With Pakistan turning to be one of the fastest growing LNG markets since it first started importing in 2015 and imports rising to 8.4 million tons in 2019 from 6.8 million tons in 2018, analysts say there is an urgent need to speed up import capacity expansions, which have been planned to absorb incremental inflows.

The gap between demand and supply is expected to increase to 2.7 billion cubic feet per day (bcfd) in FY2023 and 4.8 bcfd by FY2028 without the imported gas.

“The possible gap can be bridged through enhancement in indigenous gas exploration & production through incentivizing this sector, import of interstate natural gas through development of cross-country gas pipelines and increased import of LNG,” Oil and Gas Regulatory Authority (Ogra) said in a report.

“The gas utility companies have added more than 0.5 million domestic, commercial and industrial consumers, in their respective systems, during fiscal year 2018-19.

Pakistan also has a long term contract with QatarGas at 13.37% of Brent.
 

muhammadhafeezmalik

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During the PML-N regime, Pakistan signed a 15-year LNG supply agreement with Qatar under which LNG is supplied to Pakistan at 13.37% of the Brent price. In addition to this agreement, Pakistan meets its additional needs through the spot market where prices fluctuate daily.

When the market price falls below 13.37%, the PTI government propagates that Pakistan is stuck in a costly deal, but when the market price goes up, there is no mention of the country's savings.
 

maithil

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During the PML-N regime, Pakistan signed a 15-year LNG supply agreement with Qatar under which LNG is supplied to Pakistan at 13.37% of the Brent price. In addition to this agreement, Pakistan meets its additional needs through the spot market where prices fluctuate daily.

When the market price falls below 13.37%, the PTI government propagates that Pakistan is stuck in a costly deal, but when the market price goes up, there is no mention of the country's savings.
So spot 》long term contract. Most likely will remain so in near future.
 

Patriot forever

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Pakistan has received lowest bids for two cargoes of liquefied natural gas (LNG) of 140,000 meters each from multinational commodity trading company Gunvor Singapore, it was learnt on Friday.

View attachment 678968

Gunvor Singapore placed lowest bids at 14.2277 percent for 8-9 November and at 13.8377 percent for 18-19 November in response to an international tender last month by state-owned Pakistan LNG Limited (PLL), according to an official document seen by The News. Other companies bid for 8-9 November window were Trafiguara (14.3338 percent) and PetroChina International (15.3152 percent).

For the second window, DXT Trading Company bid at 14.4610 percent, Trafiguara PTE (14.3338 percent) and POSCO International (16.0444 percent). PLL had sought tenders from foreign suppliers to supply three cargoes of approximately 420,000 cubic metres of LNG for November.

PLL invited bids from international suppliers for supply of three LNG cargoes on delivered ex-ship basis at Port Qasim. Cargo of 140,000 cubic meters each is required to be delivered on November 8-9, November 15-16, and November 18-19.

PLL resumed spot buying of LNG after six-month pause in July as energy demand is ramping up with easing lockdown.

PLL were mandated by the government to carry out the business of the import, purifying, buying, storing, supplying, distributing, transporting, transmitting, processing, measuring, metering and selling of natural gas, LNG, re-gasified LNG, to meet the country’s gas requirements.

PLL procures LNG from international markets and enters into onward arrangements for supply of gas to the end user, thereby managing the whole supply chain of LNG from procurement to end user gas sale agreements.

Pakistan currently has two operational LNG terminals – Elengy Terminal and Gasport Pakistan Ltd. having a capacity of 600 million metric cubic feet per day each.

With Pakistan turning to be one of the fastest growing LNG markets since it first started importing in 2015 and imports rising to 8.4 million tons in 2019 from 6.8 million tons in 2018, analysts say there is an urgent need to speed up import capacity expansions, which have been planned to absorb incremental inflows.

The gap between demand and supply is expected to increase to 2.7 billion cubic feet per day (bcfd) in FY2023 and 4.8 bcfd by FY2028 without the imported gas.

“The possible gap can be bridged through enhancement in indigenous gas exploration & production through incentivizing this sector, import of interstate natural gas through development of cross-country gas pipelines and increased import of LNG,” Oil and Gas Regulatory Authority (Ogra) said in a report.

“The gas utility companies have added more than 0.5 million domestic, commercial and industrial consumers, in their respective systems, during fiscal year 2018-19.


Pakistan also has a long term contract with QatarGas at 13.37% of Brent.
Qatar agrees to supply LNG to Pakistan on low rates: sources
By
Ahmad Ahmadani
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May 2, 2019
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https://www.facebook.com/sharer.php...-supply-lng-to-pakistan-on-low-rates-sources/
https://twitter.com/intent/tweet?te...o-pakistan-on-low-rates-sources/&via=Profitpk
https://www.linkedin.com/shareArtic...+supply+LNG+to+Pakistan+on+low+rates:+sources
https://defence.pk/pdf/whatsapp://s...-supply-lng-to-pakistan-on-low-rates-sources/



  • ‘The new LNG supply agreements will help Pakistan save approximately $2.5bn in 10 years’
ISLAMABAD: The government has convinced Qatar to supply 400 million cubic feet per day (MMBFD) of Liquefied Natural Gas (LNG) to Pakistan on low rates under fresh agreements, which would be signed in the near future, sources revealed on Thursday.
Sources in the Petroleum Division told Pakistan Today that the government has convinced the Qatari government to supply LNG at cheaper rates, as compared to the rates and terms and conditions of LNG deal signed by the Pakistan Muslim League-Nawaz (PML-N) government.
They said that both the sides have almost settled major terms and conditions of the new LNG supply agreements, adding that both countries would sign two agreements in this regard.
“One agreement will remain effective for 10 years while the second agreement will remain functional for 15 years. With the new LNG supply agreements, Pakistan’s national exchequer will save approximately $2.5 billion in 10 years,” said sources. “Qatar is likely to provide LNG to Pakistan at 11.5pc of crude oil price under the new ten-year agreement, while it may also provide LNG for 15 years to Pakistan at 11.25pc of crude oil price.”
Sources said that the government, by securing fresh LNG deal with Qatar, has achieved great success in controlling the country’s energy crisis.
They also informed that the team, which had held meetings with Qatari officials to secure fresh LNG deals, has informed Prime Minister Imran Khan that the federal cabinet should grant its necessary final approval only after reviewing the offers of other countries regarding the supply of LNG to Pakistan.
They said the problems for former finance minister Miftah Ismail and former PM Shahid Khaqqan Abbasi are likely to increase in the National Accountability Bureau (NAB), which is currently probing the previous LNG deals and has recommended the Interior Ministry to place seven names allegedly involved in the scam on exist control list after securing strong evidence against the accused.
It is pertinent to mention that the PML-N government had inked LNG supply deal with Qatar for 15 years at 13.37pc of crude oil price. Former petroleum minister Shahid Khaqqan Abbasi had managed to get the federal cabinet’s approval for LNG supply agreement with Qatar at 13.80pc of crude’s price.
According to the documents available with this scribe, Pakistan LNG Limited (PLL) has proved that Pakistan was receiving each LNG cargo from Qatar at an expensive rate, around Rs200 million more than the rates of private commodity lenders.


Qatar contract is being renegotiated by current government to 11.5%.
The rest of LNG demand is met through spot.

When comparing spot, it is better to take an average for 3 months. We saved a lot earlier.
You argument is flawed by basing it on just one shipment.
 

muhammadhafeezmalik

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Qatar agrees to supply LNG to Pakistan on low rates: sources
By
Ahmad Ahmadani
-
May 2, 2019
0
4289
https://www.facebook.com/sharer.php?u=https://profit.pakistantoday.com.pk/2019/05/02/qatar-agrees-to-supply-lng-to-pakistan-on-low-rates-sources/
https://twitter.com/intent/tweet?text=Qatar+agrees+to+supply+LNG+to+Pakistan+on+low+rates:+sources&url=https://profit.pakistantoday.com.pk/2019/05/02/qatar-agrees-to-supply-lng-to-pakistan-on-low-rates-sources/&via=Profitpk
https://www.linkedin.com/shareArticle?mini=true&url=https://profit.pakistantoday.com.pk/2019/05/02/qatar-agrees-to-supply-lng-to-pakistan-on-low-rates-sources/&title=Qatar+agrees+to+supply+LNG+to+Pakistan+on+low+rates:+sources
https://defence.pk/pdf/whatsapp://send?text=Qatar+agrees+to+supply+LNG+to+Pakistan+on+low+rates:+sources https://profit.pakistantoday.com.pk/2019/05/02/qatar-agrees-to-supply-lng-to-pakistan-on-low-rates-sources/



  • ‘The new LNG supply agreements will help Pakistan save approximately $2.5bn in 10 years’
ISLAMABAD: The government has convinced Qatar to supply 400 million cubic feet per day (MMBFD) of Liquefied Natural Gas (LNG) to Pakistan on low rates under fresh agreements, which would be signed in the near future, sources revealed on Thursday.
Sources in the Petroleum Division told Pakistan Today that the government has convinced the Qatari government to supply LNG at cheaper rates, as compared to the rates and terms and conditions of LNG deal signed by the Pakistan Muslim League-Nawaz (PML-N) government.
They said that both the sides have almost settled major terms and conditions of the new LNG supply agreements, adding that both countries would sign two agreements in this regard.
“One agreement will remain effective for 10 years while the second agreement will remain functional for 15 years. With the new LNG supply agreements, Pakistan’s national exchequer will save approximately $2.5 billion in 10 years,” said sources. “Qatar is likely to provide LNG to Pakistan at 11.5pc of crude oil price under the new ten-year agreement, while it may also provide LNG for 15 years to Pakistan at 11.25pc of crude oil price.”
Sources said that the government, by securing fresh LNG deal with Qatar, has achieved great success in controlling the country’s energy crisis.
They also informed that the team, which had held meetings with Qatari officials to secure fresh LNG deals, has informed Prime Minister Imran Khan that the federal cabinet should grant its necessary final approval only after reviewing the offers of other countries regarding the supply of LNG to Pakistan.
They said the problems for former finance minister Miftah Ismail and former PM Shahid Khaqqan Abbasi are likely to increase in the National Accountability Bureau (NAB), which is currently probing the previous LNG deals and has recommended the Interior Ministry to place seven names allegedly involved in the scam on exist control list after securing strong evidence against the accused.
It is pertinent to mention that the PML-N government had inked LNG supply deal with Qatar for 15 years at 13.37pc of crude oil price. Former petroleum minister Shahid Khaqqan Abbasi had managed to get the federal cabinet’s approval for LNG supply agreement with Qatar at 13.80pc of crude’s price.
According to the documents available with this scribe, Pakistan LNG Limited (PLL) has proved that Pakistan was receiving each LNG cargo from Qatar at an expensive rate, around Rs200 million more than the rates of private commodity lenders.


Qatar contract is being renegotiated by current government to 11.5%.
The rest of LNG demand is met through spot.

When comparing spot, it is better to take an average for 3 months. We saved a lot earlier.
You argument is flawed by basing it on just one shipment.
That offer from Qatar could not be materialized because of this government's inefficiency. Even the government could not have capitalized in COVID situation when the prices had gone even down from that offer. Pakistan should have secure a long term agreement at that time instead we imported Furnace Oil and run low efficiency power plants of FO, God knows why??

Energy, LNG or petroleum products agreements are complex contracts, they vary from time to time and country to country. There are many factors involved in pricing for certain period and region.


 

Patriot forever

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That offer from Qatar could not be materialized because of this government's inefficiency. Even the government could not have capitalized in COVID situation when the prices had gone even down from that offer. Pakistan should have secure a long term agreement at that time instead we imported Furnace Oil and run low efficiency power plants of FO, God knows why??

Energy, LNG or petroleum products agreements are complex contracts, they vary from time to time and country to country. There are many factors involved in pricing for certain period and region.


Recent long term contracts are being signed at an average of 10.5% for 10 year.

Just in September this year.

Screenshot_20201014-142609.png
 

muhammadhafeezmalik

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Recent long term contracts are being signed at an average of 10.5% for 10 year.

Just in September this year.

View attachment 679373
Oh man!!! :crazy::hitwall:😡

This is spot purchase of two cargoes in September. How is it a long term contract???


When prices were as low as >6 percent to 8 percent of Brent crude oil prices becuase of COVID, Pakistan could have easily clinch a deal of a long term contract for under 9 percent of Brent crude oil prices.
 

Patriot forever

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Oh man!!! :crazy::hitwall:😡

This is spot purchase of two cargoes in September. How is it a long term contract???


When prices were as low as >6 percent to 8 percent of Brent crude oil prices becuase of COVID, Pakistan could have easily clinch a deal of a long term contract for under 9 percent of Brent crude oil prices.
Bro I was telling you that spot prices have been that low recently. I know those 2 contracts were of spot. We have relied more on spot contracts this year.

Long term contracts don't happen overnight. We got the offer from Qatar we went to international players to see if we can get a lower quote. Our problem is bigger, renegotiation is completely different than signing a new contract. If we were fishing for a new contract we might have got a better deal.
Actually we tried for lower at the peak of corona virus but Qatar said these prices are not reasonable for a long term contract. It's still happening just a couple of months ago PM IK went again to Qatar so yes negotiations are underway.
 

muhammadhafeezmalik

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Bro I was telling you that spot prices have been that low recently. I know those 2 contracts were of spot. We have relied more on spot contracts this year.

Long term contracts don't happen overnight. We got the offer from Qatar we went to international players to see if we can get a lower quote. Our problem is bigger, renegotiation is completely different than signing a new contract. If we were fishing for a new contract we might have got a better deal.
Actually we tried for lower at the peak of corona virus but Qatar said these prices are not reasonable for a long term contract. It's still happening just a couple of months ago PM IK went again to Qatar so yes negotiations are underway.

We need new contracts, our own gas reserves are depleting, our demand is increasing, why don't we ask for new, more bigger contracts?? Our mindset is the main obstacle. Qatar quoted a price which was lower than the earlier quoted, negotiated and agreed and we were calling blood, without realising that the other partner in alleged crime was the same Qatar. We lost an opportunity, which was created because of fight between Gulf states at that time, and now we are licking our wounds because of our mindset.
 

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Pakistan has received lowest bids for two cargoes of liquefied natural gas (LNG) of 140,000 meters each from multinational commodity trading company Gunvor Singapore, it was learnt on Friday.

View attachment 678968

Gunvor Singapore placed lowest bids at 14.2277 percent for 8-9 November and at 13.8377 percent for 18-19 November in response to an international tender last month by state-owned Pakistan LNG Limited (PLL), according to an official document seen by The News. Other companies bid for 8-9 November window were Trafiguara (14.3338 percent) and PetroChina International (15.3152 percent).

For the second window, DXT Trading Company bid at 14.4610 percent, Trafiguara PTE (14.3338 percent) and POSCO International (16.0444 percent). PLL had sought tenders from foreign suppliers to supply three cargoes of approximately 420,000 cubic metres of LNG for November.

PLL invited bids from international suppliers for supply of three LNG cargoes on delivered ex-ship basis at Port Qasim. Cargo of 140,000 cubic meters each is required to be delivered on November 8-9, November 15-16, and November 18-19.

PLL resumed spot buying of LNG after six-month pause in July as energy demand is ramping up with easing lockdown.

PLL were mandated by the government to carry out the business of the import, purifying, buying, storing, supplying, distributing, transporting, transmitting, processing, measuring, metering and selling of natural gas, LNG, re-gasified LNG, to meet the country’s gas requirements.

PLL procures LNG from international markets and enters into onward arrangements for supply of gas to the end user, thereby managing the whole supply chain of LNG from procurement to end user gas sale agreements.

Pakistan currently has two operational LNG terminals – Elengy Terminal and Gasport Pakistan Ltd. having a capacity of 600 million metric cubic feet per day each.

With Pakistan turning to be one of the fastest growing LNG markets since it first started importing in 2015 and imports rising to 8.4 million tons in 2019 from 6.8 million tons in 2018, analysts say there is an urgent need to speed up import capacity expansions, which have been planned to absorb incremental inflows.

The gap between demand and supply is expected to increase to 2.7 billion cubic feet per day (bcfd) in FY2023 and 4.8 bcfd by FY2028 without the imported gas.

“The possible gap can be bridged through enhancement in indigenous gas exploration & production through incentivizing this sector, import of interstate natural gas through development of cross-country gas pipelines and increased import of LNG,” Oil and Gas Regulatory Authority (Ogra) said in a report.

“The gas utility companies have added more than 0.5 million domestic, commercial and industrial consumers, in their respective systems, during fiscal year 2018-19.


Pakistan also has a long term contract with QatarGas at 13.37% of Brent.
uptill all spot deals were WAY CHEAPER THAN Qatar deal. also remeber oil is so low that LNG simpy cant become much cheaper...LNG prices were far lower in % of Brent when oil was high

the news, dawn and tribune ARE NOTROIRUS FOR FALSE NEWS.. i dont even consider them news outlets any more

So i will wait for official disclosure ..even if the said news is true, spot prices are suppose to be expensive
 

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