January 17, 2024 (MLN): Pakistan LNG Limited (PLL), the state-owned company that procures Liquefied Natural Gas (LNG) and delivers Natural Gas to Pakistan has secured a second LNG cargo from the State Oil Company of the Azerbaijan Republic (SOCAR) under the Government-to-Government Framework Agreement between PLL and SOCAR.
The cargo is scheduled for delivery in February 2024, according to the statement of the Ministry of Energy.
The state-run company of Azerbaijan made its first delivery of LNG cargo in December 2023, the statement said.
The government has not disclosed the price of LNG imported from SOCAR for both cargoes.
In July 2023, PLL and SOCAR signed a Framework Agreement under the Government-to-Government arrangement, which stipulates that SOCAR may offer 1 LNG cargo per month to PLL.
To recall, in November 2023, PLL floated a tender to import LNG to import a single cargo within the window of January 8-9 and the bids were set to open on November 24.
Earlier, in October two cargoes were finalised to be imported in the December 7-8 window and 13-14 window.
PLL had invited bids for these two LNG cargoes on September 27, with the deadline for submissions set for October 04.
The lowest bid received was at $15.97/mmbtu from Vitol supply for one cargo for the first window i.e. December 7-8, which the entity accepted.
It is worth mentioning that this marked PLL's first spot LNG cargo purchase in over a year.
Moreover, the Singapore-based Commodity Multinational, Trafigura submitted a bid of $19.39/ mmbtu for the second cargo, scheduled for delivery on December 13-14, a proposal that PLL rejected.
These deliveries are a part of the country's efforts to secure safe and reliable energy while promoting the sustainable development of Pakistan’s gas industry.
