OGRA withdraws notice after PSO refutes costliest purchase of LNG cargo

August 3, 2021 (MLN): The Oil and Gas Regulatory Authority (OGRA) on Tuesday has withdrawn a notification of August 2, 2021, that showed the country’s leading energy company Pakistan State Oil (PSO) has made the costliest purchase of liquefied natural gas (LNG) cargo at $20.055.

Earlier today, PSO clarified that the company has not awarded any cargo at a given price. The bid received against the required delivery of August 29 & 30, 2021 was high, resulting in a price that was not acceptable to PSO and the tender was scrapped on July 27, 2021. PSO has retendered for the same delivery period on July 29, 2021.

Shortly afterward, OGRA withdrew the notification from a day earlier stating: "As per routine monthly practice, estimated prices of RLNG are computed based on available data at the time of computation.

“Since the Prices are for the month in advance, many pricing components are calculated for determination of Prices on a Provisional basis based on available data at that time, which is later actualized by OGRA based on actual costs incurred,” it added.

However, the authority said that PSO informed it had scraped the cargo with offered price of 27.87% of the Brent, RLNG price notified on 2nd August is no more valid and August RLNG price notification is being withdrawn.

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