Are we expecting too much from this ministry which can't even bring right numbers? The average price (DES) of contracted cargoes were less than $6/mmbtu for year 2020 (Jan-Dec).
"It is being repeatedly quoted tht in 2019, tender for Oct -Dec was floated in Aug while in 2020 tenders were issued late.The facts are tht combined10 cargo tender for Oct-Dec (2019) was issued in Aug but only 3/10 tenders were awarded whn demand was confirmed."
They are accepting that this year they have issued tenders LATE. What else are we saying??
Here bro each and every query of yours is answered in the article below for easy understanding.
LNG spot cargoes purchased at $6.84’
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Staff Report
ISLAMABAD: The Petroleum Division on Tuesday said that all spot cargoes purchased by Pakistan averaged $6.84 delivered ex ship (DES), while the cargoes received under long-term contracts averaged $8.06 DES, showing an increase of 18 per cent in price.
The statement came in response to media comments about two spot cargo bids received by Pakistan LNG Limited (PLL) for deliveries in the second half of February 2021.
Earlier, it was revealed by the media that PLL received an all-time highest bid at 32.48 per cent of Brent to secure cargoes for the month of February with a 31-day gap between tender opening and advertisement.
PLL invited bids from international suppliers for the supply of two LNG cargoes on delivered ex-ship (DES) basis at Port Qasim, Karachi. The advertisement was given on November 28 for two cargoes for February 2021.
Extremely high bids were received for two LNG cargoes for slots of February 15-16, 2021, February 23-24 from four LNG suppliers.
In this regard, the Petroleum Division spokesperson said that spot market for LNG is always higher in the winter months versus summer months given the global demand and supply dynamics.
“Comparing a spot price in a high winter month with a long-term contract is comparing apples and oranges. If the same comparison is made for a summer month, it will be much lesser,” said the spokesperson, adding if a comparison is to be made, it can be made for a full year that includes all seasons.
The spokesperson stressed that it must be noted that PLL is bound to follow the PPRA procurement process, which requires a 30-day tender with a ten day period thereafter. PLL starts the tender process approximately 90-100 days beforehand as soon as demand is confirmed. It is being repeatedly quoted that in 2019, tender for October to December was given in August, while the tenders were issued late in 2020.
“The facts are that a consolidated tender for October-December 2019 for 10 cargoes was issued in August, prior to confirmation of demand. When the demand was finally confirmed, only 3 out of these 10 tenders were awarded. The average cost of cargoes in December 2019 was $7.81 which is higher than that of December 2020 at $6.34,” he added.
He said that if LNG is priced as natural gas, which will require a change in legislation, thereby ensuring price recovery for any sale, additional short term to medium term contracts can be put in place. “Until such time, spot purchases can only be made once firm demand is established for consumers who are prepared to pay the full price.”
“At this time, the supply side of LNG in the global market is very tight because many facilities are facing technical issues; however, it is expected that these supply constraints will ease by March 2021,” he concluded.
ISLAMABAD: The Petroleum Division on Tuesday said that all spot cargoes purchased by Pakistan averaged $6.84 delivered ex ship (DES), while the cargoes received under long-term contracts averaged $8.0
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