PSO has not made costliest purchase of LNG cargo: company clarifies

August 3, 2021 (MLN): Pakistan State Oil (PSO), the country’s leading energy company, has strongly refuted the media news published today pertaining to the costliest purchase of LNG cargo and non-disclosure of procurement rates.

Taking to its official Twitter account, the company clarified that PSO has not awarded any cargo at $20.055. 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.

The company further stated that being a responsible corporate entity, PSO always maintains absolute transparency in all its business dealings and practices. All bid results are published on P30's website as per Public Procurement Regulatory Authority (PPRA) rules.

Furthermore, PSO has entered into a new long-term supply contract with Qatar Petroleum (QP), supplies against which will start in January 2022 and this will further reduce the basket price of LNG being imported into the country.

Considering the higher demand in the upcoming winter season, PSO has exercised the option in the new QP contract for bringing 4 additional cargoes in November and December at the new contractual prices, which are expected to be much lower than the market price during winter.

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