Pakistan staring at looming gas crisis

March 28, 2022

Pakistan LNG Limited’s (PLL) has also decided not to procure spot LNG cargo for April at the price of $34.677 per MMBTU offered by Vitol Bahrain in the bids opened on Friday….reports Asian Lite News

Pakistan is likely to witness another gas crisis in the upcoming summer season, as well as after the withdrawal of a Singapore-based LNG trading company from the commitment to deliver four LNG cargoes, The News reported.

Pakistan LNG Limited’s (PLL) has also decided not to procure spot LNG cargo for April at the price of $34.677 per MMBTU offered by Vitol Bahrain in the bids opened on Friday.

The Singapore-based company GUNVOR was supposed to deliver the LNG cargoes in the remaining months – one in each April, May and two in June – of its five-year contract ending in July 2022.

PLL had signed a five-year contract in June 2017 with GUVNOR, obliging the Singaporean company to supply the LNG term cargoes at 11.6247 per cent of Brent.

The company earlier pulled out of the contract thrice, first on November 19, 2021, second time on January 10, 2022, and then on March 11, 2022. This time, it is more than four times GUVNOR has defaulted taking the number of defaults to seven times in total.

GUNVOR cargoes were scheduled to arrive on April 15, May 14, and June 4 and 9, 2022, an official informed.

But, the trading company informed Islamabad that it would not be able to deliver the LNG cargoes in its remaining tenure of the term agreement.

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