Petroleum Division clarifies media reports on LNG procurement for Jan 2021

December 11, 2020 (MLN): Petroleum Division on Friday, issued clarification regarding media reports being circulated on LNG procurement for Jan 2021.

In this regard, the Division clarified that with the PLL tender which has just closed, with the same average slope as of December, a total number of 11 cargoes are secured for January 2021. PLL is also working on making arrangements for two more cargoes for January 2021.

In a press release issued today, the Division also mentioned that there has been no planned gas load shedding anywhere in the country since the onset of winter in November. As approved by the Federal Cabinet, the load management plan put in place will ensure no gas load shedding for domestic, commercial and export industry customers. CNG will be curtailed based on available supplies, followed by captive generation.

Unfortunately, the campaign by a certain segment of the media based on incorrect analysis of the LNG market has harmed the latest tender by causing some suppliers to stay away, the Division said. The wide range of prices offered for the same delivery date clearly shows that the time between the bid opening and the delivery date is NOT the price determinant; the main driver is global demand and supply, it added.

Moreover, the Division also highlighted that the cheapest cargo Pakistan ever bought at $2.23/mmbtu had only 39 days between bid opening and delivery, while previously the most expensive cargo bought at $10.27 had 71 days between bid opening and delivery.

Copyright Mettis Link News