Pakistan issues seven-cargo spot LNG tender

Darren David

01-Dec-2015

Pakistan State Oil (PSO) has issued a buy tender for seven cargoes. The cargoes are to be delivered on a DES (delivered ex-ship) basis for between January and February 2016, according to tender documents released by the company.

Three cargoes are required for delivery between 10-12 , 17-19 and 25-27 January respectively. Four cargoes are required to be delivered between 1-3 , 9-11 , 16-18 and 23-25 February.

The size of each cargo has been specified at 140,185 cubic metres (cbm), with a 2% quantity tolerance.

The tender was launched on 30 November and closes on 14 December. A bid deposit of $300,000 is required to participate.

PSO in late October awarded Gunvor three tenders for three cargoes to be delivered between November and December.

Gunvor supplied the first cargo that was delivered on 15-17 November at a 16.03% indexation to Brent crude.

The 5-7 December delivery was awarded at 15.60% Brent indexation and the 15-17 December delivery at 15.50% Brent indexation (see LMD 19 November).

PSO’s recent LNG tenders have drawn limited interest from traders because of perceived credit and physical risks, as well as the high costs associated with discharging cargoes at Port Qasim. A discharge operation costs around $800,000, sources said.

Switzerland-based energy trading firm Trafigura was the only other participant in the previous tender held by PSO.

While PSO is understood to have either concluded or is close to concluding a long-term deal with LNG producer Qatargas, the short-term tender could indicate that the deal will start later than expected or is yet to be finalised.

The initial timeline for the commencement of long-term deliveries was expected by early December (see GLM 9 November). darren.david@icis.com

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