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19 b is misrepresentation
Pakistan seeks eight LNG cargoes for September, October
Pakistan LNG Limited (PLL) has floated a tender, seeking delivery of eight cargoes of the liquefied natural gas (LNG) in September this year.www.bolnews.com
Tender:
View attachment 760790
Evaluation:
View attachment 760791
Pakistan has cancelled this tender. It's a bold but calculated move motivated by last two days trend showing 5-10% decrease in spot lng prices (TTF/ JKM). Remember in February, we cancelled a tender and refloated a new one instead, that risk paid off and we got cheaper quotes as a result. Lets hope if we can get the same results this time. It's a fairly risky but appreciated move by Petroleum Division.
It also begs for a carefully articulated road map for upcoming winter's procurement plan, if they have any, unfortunately PD has a proven tendency for adhoc/ band-aid solutions than a deliberated and long term strategy. If we are getting these prices (+$15/mmbtu) in September/ October, it's unlikely to get any cheaper in winters.
It will be interesting to see whether PD can source cargoes (upto 2) from QP starting October/ November at 10.2%, as was foretold at the signage of PTI's lng contract in February. (Note 2 out of 3 lowest bids for October, priced at $13.9875, are by QP Trading, the spot lng trading arm of QP)
Indeed a bold move, and where there is room for cost cutting.
At the start of the year, this strategy paid off, but now with the increase in demand globally and industries slowly coming back online, it would be interesting to see if the trend continues.
Maybe @niaz can contribute further.
Indeed a bold move, and where there is room for cost cutting.
At the start of the year, this strategy paid off, but now with the increase in demand globally and industries slowly coming back online, it would be interesting to see if the trend continues.
Maybe @niaz can contribute further.