Islamabad: Pakistan LNG Limited (PLL) has approved the purchase of an LNG cargo from the spot market to ensure gas supply in mid-July. According to the company, the purchase decision was made after reviewing three international bids received.
According to a statement by Pakistan LNG Limited, a total of three bids were received for the LNG cargo to be supplied during July 15-16. The lowest bid was $18.23 per MMBTU, which was accepted in accordance with the prescribed rules and commercial terms.
According to the announcement, the other two bids were $18.59 and $18.72 per MMBTU, respectively. The company said that the acceptance of the lowest acceptable bid maintained competition and transparency in the procurement process.
According to energy sector experts, the decision to purchase LNG from the spot market is usually made keeping in mind domestic demand, available reserves, import requirements and global prices. They say that due to price fluctuations in the international market, competitive bids are invited for each purchase to ensure that the fuel is procured at the lowest cost.
Experts further say that due to weather, industrial activities and power generation requirements, LNG imports have become an important part of Pakistan’s energy system. Therefore, timely availability of cargo not only helps in maintaining stable gas supply but also plays an important role in meeting the needs of power generation and the industrial sector.
