PSO gets highest-ever bid for LNG cargo at $25.30 per mmbtu

[muhammadhafeezmalik]

Pakistan State Oil (PSO) here on Friday got the highest-ever bid from the Qatar Petroleum (QP) Trading at 34.6688 percent of the Brent that translates into $25.30 per MMBtu for spot LNG cargo required to be delivered for September 16-17.

The state-owned entity also received the bid price from VITOL at 24.5456 percent of Brent, meaning $17.91 MMBtu for the other spot LNG cargo for the delivery window of 26-27 September. Both the bids PSO got are costlier if compared with the price of LNG cargo at 22.1311pc PSO procured from the QP Trading for 29-30 August.

Interestingly, against the tender for two LNG cargoes, one for delivery window for September 16-17 and other for September 26-27, one bidder for each time slot appeared on the scene. The QP Trading, the one and only company, came up with the bid at price of 34.6688 percent of the Brent for the LNG cargo to be delivered on September 16-17 and VITOL came up with its bid price at 24.5456 percent of the Brent for delivery on September 26-27.

When contacted, the spokesman of Pakistan State Oil said: “We will go to the Board with bids received for decision if PSO procures the LNG cargoes with the said bid price or not. And we will put forward the supply demand situation globally and accordingly, the board will take decisions.” Asked if PSO will scratch down the tender and go for another seeking bids at the lower side, he said it was too early to comment on the outcome of the decision as the board of directors will decide about it.

However, a Petroleum Division official said that PSO and PLL, being public sector entities, are bound to issue tenders for spot purchase of LNG one month back, and the bids are opened after 30 days. Under the PPRA rules, PSO is bound to hold up the LNG bids prices for 15 days for which the LNG bidders add premium in the bid price, causing more surge in LNG price. If the board decides to issue a short tender by involving the emergency clause of PPRA rules, then PSO will go for short tender as was done in the last case.

PSO earlier got the bid at $20.055 equal to 27.9pc of the Brent for the slot of August 29-30 but it cancelled it because the bid price was on higher side and then it went for emergency tender and managed one spot LNG cargo at $15.9271 per MMBtu from Qatar Petroleum Trading in response to its short tender that opened here on Thursday. The Qatar Petroleum (QP) Trading is the only one bidder that appeared with its bid at price of 22.1311pc of the Brent.

PSO gets highest-ever bid for LNG cargo at $25.30 per mmbtu

ISLAMABAD: Pakistan State Oil here on Friday got the highest-ever bid from the Qatar Petroleum Trading at 34.6688 percent of the Brent that translates into $25.30 per MMBtu for spot LNG cargo...

www.thenews.com.pk

Same mistake again, why they are tendering so late?? Tendering for 16 September on 20th August??

 

[muhammadhafeezmalik]

Why has Imran cancelled the longterm contract with Qatar for I think $11 per mmbtu? It was a great deal looking at what Imran paying today.

You have no information so please shut-up. Imran Khan has not cancelled any long-term contract. Pakistan has not any long-term contract as high as $11/mmbtu.

 

[Norwegian]

Same mistake again, why they are tendering so late?? Tendering for 16 September on 20th August??

Why wasn't tendering done in 2018 for 2021? Pmln donkey

Why has Imran cancelled the longterm contract with Qatar for I think $11 per mmbtu? It was a great deal looking at what Imran paying today.

It isn't canceled.

 

[Path-Finder]

Why has Imran cancelled the longterm contract with Qatar for I think $11 per mmbtu? It was a great deal looking at what Imran paying today.

its NOT cancelled but renegotiated.

 

[farok84]

[/QUOTE]

Same mistake again, why they are tendering so late?? Tendering for 16 September on 20th August??

Hi,

The article you shared, answers the questions.

However, a Petroleum Division official said that PSO and PLL, being public sector entities, are bound to issue tenders for spot purchase of LNG one month back, and the bids are opened after 30 days.
Under the PPRA rules, PSO is bound to hold up the LNG bids prices for 15 days for which the LNG bidders add premium in the bid price, causing more surge in LNG price.
If the board decides to issue a short tender by involving the emergency clause of PPRA rules, then PSO will go for short tender as was done in the last case.

Funny suppliers don't want to hold prices for even 15 days (from bid evaluation to tender award) and are charging premiums while quoting bids, but charlatans in media and their political backers hoping to fool masses, wants PD to bid for September deliveries 3-4 months in advance (say in May/ June) hoping to get a price of May/ June for September deliveries. This is not how spot markets for any commodity, let alone an extremely volatile one, like Lng works. Is this really so hard to grasp?

A solution is needed to overhaul our outdated procurement rules, specially for spot purchases of Lng, but purveying lies to fool masses, will stand only in hampering those solutions.

its NOT cancelled but renegotiated.

I think, PTI signed a new contract instead of renegotiating the old one, Qatar didn't entertain our request for renegotiation. Our old contract remains unchanged, at 13.37% of Brent, while new one is at 10.2%.

Deliveries for 2 cargoes/month should start from January 2022 under the new contract at 10.2% while continuing to import 5 cargoes/month from earlier (PMLN) contract at 13.37%. You will see planted media persons going mum on Lng procurement after January onwards.

Both PTI & PMLN contracts, price openers are due in 2026.

 

[Mav3rick]

It is very clear that Long Term Contracts were needed with prices tied to Brent. We needed 20-25 year contracts with Qatar to fulfill all our requirements.

I cannot understand how people can still buy into Imran Khan's lies and deceit after 3 years of his Governance. I mean yeah, who can deny Nawaz Sharif is one bloody corrupt crook and so is Zardari; but so is Imran Khan and each and every member of his cabinet and party. Infact, I am 100% sure that none can find clean Pakistanis to Governance and so we have to make do. The best we can do is find the most competent in this lot of rot........or just handover the Governance to the Military, officially.

 

[Norwegian]

Funny suppliers don't want to hold prices for even 15 days (from bid evaluation to tender award) and are charging premiums while quoting bids, but charlatans in media and their political backers hoping to fool masses, wants PD to bid for September deliveries 3-4 months in advance (say in May/ June) hoping to get a price of May/ June for September deliveries. This is not how spot markets for any commodity, let alone an extremely volatile one, like Lng works. Is this really so hard to grasp?

They are not charlatans. They are Pmln donkeys

You will see planted media persons going mum on Lng procurement after January onwards.

Planted by Pmln donkeys

 

[Path-Finder]

I think, PTI signed a new contract instead of renegotiating the old one, Qatar didn't entertain our request for renegotiation. Our old contract remains unchanged, at 13.37% of Brent, while new one is at 10.2%.

Deliveries for 2 cargoes/month should start from January 2022 under the new contract at 10.2% while continuing to import 5 cargoes/month from earlier (PMLN) contract at 13.37%. You will see planted media persons going mum on Lng procurement after January onwards.

Both PTI & PMLN contracts, price openers are due in 2026.

if you were not here to educate us on the complexicities of oil and gas industry then we would be lost and league ماجے گامۓ چھیدے would be doing copy paste yahvian bongian and league chawal on forum without contest.

 

[farok84]

@muhammadhafeezmalik This statement by PSO should further clarify and answer your questions.

https://twitter.com/x/status/1429170681091182596

 

[muhammadhafeezmalik]

Why wasn't tendering done in 2018 for 2021? Pmln donkey.

They should wait till the last day. Why they are tendering 20 days before??

 

[muhammadhafeezmalik]

Hi,

The article you shared, answers the questions.




Funny suppliers don't want to hold prices for even 15 days (from bid evaluation to tender award) and are charging premiums while quoting bids, but charlatans in media and their political backers hoping to fool masses, wants PD to bid for September deliveries 3-4 months in advance (say in May/ June) hoping to get a price of May/ June for September deliveries. This is not how spot markets for any commodity, let alone an extremely volatile one, like Lng works. Is this really so hard to grasp?

A solution is needed to overhaul our outdated procurement rules, specially for spot purchases of Lng, but purveying lies to fool masses, will stand only in hampering those solutions.


View attachment 771792







I think, PTI signed a new contract instead of renegotiating the old one, Qatar didn't entertain our request for renegotiation. Our old contract remains unchanged, at 13.37% of Brent, while new one is at 10.2%.

Deliveries for 2 cargoes/month should start from January 2022 under the new contract at 10.2% while continuing to import 5 cargoes/month from earlier (PMLN) contract at 13.37%. You will see planted media persons going mum on Lng procurement after January onwards.

Both PTI & PMLN contracts, price openers are due in 2026.
[/QUOTE]

This 10.2% QatarGas deal will replace Gunvor contract which was at 11.6% of Brent. Which was quite competitive if compared with the long term contracts of that time. But PTI will keep comparing this with 15 year term contract.

 

[farok84]

[/QUOTE]
This 10.2% QatarGas deal will replace Gunvor contract which was at 11.6% of Brent. Which was quite competitive if compared with the long term contracts of that time. But PTI will keep comparing this with 15 year term contract.
[/QUOTE]

Hi.

The first Gunvor short term contract that ended in December 2020 was with PSO for 1 cargo/month (total 60 cargoes for 5 years) at 13.37% signed in late 2015. Please plot it on here. Even at that time, our deal was at higher end. The source of data is IEA.

https://aperc.or.jp/file/2020/9/1/C...on+for+supply+security+in+the+APEC+region.pdf

The second Gunvor contract is with PLL (also short term, 5 years period for 60 cargoes), and will continue till December, 2022, priced at 11.6247%, and was signed in May 2017, with deliveries starting in November 2017 (1). PTI mulled to cancel this and Eni deal in 2020, but to my knowledge they both are in play and are not yet cancelled. If you have verifiable information regarding Gunvor's contract with PLL cancelation, kindly share. (2)

Since we are at it, let's also discuss Eni's deal which was also signed, in May 2017 (deliveries starting from December 2017). It is actually one of the most interesting deals which defies all logic and conventional wisdom. The Eni contract, which runs for 15 years to 2032 (total 180 cargoes), is priced at 11.6247% for the first two years (total cargoes 24), 11.95% for the following two years (total cargoes 24), then 12.14% for the remaining 11 years (total cargoes 132) (3).

Why our contract price is increasing while procuring higher volumes for latter years?

PTI (2021) contract is for delivery of 24 cargoes/ year for 2022, 36 cargoes/year for 2023, and 48 cargoes/year from 2024 onwards. Sure, from Jan 2022, it will replace 2015's Gunvor volume (priced at 13.37%) and provide an extra cargo, and from Jan 2023, it will replace both Gunvor cargoes (priced at 13.37%, 2015 and 11.6247%, 2017) and will start providing an extra cargo on top of Gunvor replacements and from Jan 2024, provide extra 2 cargoes over Gunvor replacements.

Diminishing our new contract as simply replacement volumes is lame and in bad taste.

They should wait till the last day. Why they are tendering 20 days before??

Petroleum Division, is actually asking for this. They want to change hold period from 15 days to 2 days for spot Lng procurements, and are asking for exemption from PPRA rules. If I remember correctly, PLL got exemption for a Feb 2021 tender (which paid off by getting a reduced price). They want to rein in hold time premiums which suppliers are adding in bid prices quite generously (15-25% over JKM). This is what they are charging at hold periods of 15 days, imagine what will they be charging for hold periods of 1, or 2, or 3 months, as being demanded by a section of our clueless and hyper-ignorant media.


Edit:
Added source(s) links.

(1) This is a pretty good document overall for anyone keen about our Lng procurements history. Our first cargo delivery from Gunvor and Eni, PLL contracts.

https://www.ogra.org.pk/download/5380

(2) Both Eni & Gunvor contracts of PLL are continuing as of July 2021.

https://www.ogra.org.pk/download/6153

(3)
Contract Price:

Pakistan LNG mulls nixing Eni, Gunvor deals

KARACHI: Pakistan’s main buyer of liquefied natural gas is considering canceling two long-term contracts as a slump in spot prices and abundant production create opportunities for cheaper...

www.thenews.com.pk

Contract Signage Date:

Eni wins an international tender for a 15-year LNG supply contract in Pakistan

This LNG contract will contribute to satisfy the increasing energy needs of Pakistan and will allow Eni to further consolidate its presence in the country, where Eni is already leader for domestic gas production.

www.eni.com

 

[ziaulislam]

Pakistan State Oil (PSO) here on Friday got the highest-ever bid from the Qatar Petroleum (QP) Trading at 34.6688 percent of the Brent that translates into $25.30 per MMBtu for spot LNG cargo required to be delivered for September 16-17.

The state-owned entity also received the bid price from VITOL at 24.5456 percent of Brent, meaning $17.91 MMBtu for the other spot LNG cargo for the delivery window of 26-27 September. Both the bids PSO got are costlier if compared with the price of LNG cargo at 22.1311pc PSO procured from the QP Trading for 29-30 August.
View attachment 771613

Interestingly, against the tender for two LNG cargoes, one for delivery window for September 16-17 and other for September 26-27, one bidder for each time slot appeared on the scene. The QP Trading, the one and only company, came up with the bid at price of 34.6688 percent of the Brent for the LNG cargo to be delivered on September 16-17 and VITOL came up with its bid price at 24.5456 percent of the Brent for delivery on September 26-27.

When contacted, the spokesman of Pakistan State Oil said: “We will go to the Board with bids received for decision if PSO procures the LNG cargoes with the said bid price or not. And we will put forward the supply demand situation globally and accordingly, the board will take decisions.” Asked if PSO will scratch down the tender and go for another seeking bids at the lower side, he said it was too early to comment on the outcome of the decision as the board of directors will decide about it.

However, a Petroleum Division official said that PSO and PLL, being public sector entities, are bound to issue tenders for spot purchase of LNG one month back, and the bids are opened after 30 days. Under the PPRA rules, PSO is bound to hold up the LNG bids prices for 15 days for which the LNG bidders add premium in the bid price, causing more surge in LNG price. If the board decides to issue a short tender by involving the emergency clause of PPRA rules, then PSO will go for short tender as was done in the last case.

PSO earlier got the bid at $20.055 equal to 27.9pc of the Brent for the slot of August 29-30 but it cancelled it because the bid price was on higher side and then it went for emergency tender and managed one spot LNG cargo at $15.9271 per MMBtu from Qatar Petroleum Trading in response to its short tender that opened here on Thursday. The Qatar Petroleum (QP) Trading is the only one bidder that appeared with its bid at price of 22.1311pc of the Brent.

PSO gets highest-ever bid for LNG cargo at $25.30 per mmbtu

ISLAMABAD: Pakistan State Oil here on Friday got the highest-ever bid from the Qatar Petroleum Trading at 34.6688 percent of the Brent that translates into $25.30 per MMBtu for spot LNG cargo...

www.thenews.com.pk

Same mistake again, why they are tendering so late?? Tendering for 16 September on 20th August??

Damn you IK your shit has caused international gas prices go up
From uganda

 

[FOOLS_NIGHTMARE]

May Allah have mercy on our beloved Pakistan.

https://twitter.com/x/status/1432601726331228165

 

[farok84]

May Allah have mercy on our beloved Pakistan.

https://twitter.com/x/status/1432601726331228165

Hi,
He explains further.

https://twitter.com/x/status/1432974706240413700