Global LNG Hub
No Result
View All Result
  • Login
  • Premium Content
    • All
    • Asian LNG
    • Australian LNG
    • European LNG
    • FLNG
    • Global LNG
    • LNG Africa
    • LNG Bunkering
    • LNG Latin America
    • LNG North America
    • LNG Projects
    • LNG Trade and Pricing
    • Middle East LNG
    • Small Scale LNG
    • Others
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Newsletter
  • Videos
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
  • Subscribe
  • My account
  • Login
SUBSCRIBE
  • Premium Content
    • All
    • Asian LNG
    • Australian LNG
    • European LNG
    • FLNG
    • Global LNG
    • LNG Africa
    • LNG Bunkering
    • LNG Latin America
    • LNG North America
    • LNG Projects
    • LNG Trade and Pricing
    • Middle East LNG
    • Small Scale LNG
    • Others
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Newsletter
  • Videos
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
  • Subscribe
  • My account
  • Login
Global LNG Hub
Home LNG Trade

Pakistan loses out to Asia for spot cargo after bidder cancels February delivery

Editor by Editor
2 years ago
min read3 min
Spot Cargo
Share on FacebookShare on TwitterShare on Linkedin

An LNG player, believed to be the UAE’s Emirates National Oil Company (ENOC), has defaulted on its agreement to supply a cargo to Pakistan in February, state-owned firm Pakistan LNG Limited (PLL) confirmed over the weekend, and suggested the soaring spot LNG price in Asia is to blame.

RELATED POSTS

Natural gas prices down by over 40% across key gas markets

Natural gas prices down by over 40% across key gas markets

6 days ago
Global gas price correlation remains strong

Global gas price correlation remains strong

2 weeks ago
Henry hub prices slide below $3

Henry hub prices slide below $3

2 weeks ago

Besides ENOC, Azerbaijan’s state-owned Socar Trading had also planned to back out of its agreed delivery next month, but was persuaded not to do so through diplomatic channels, Pakistan’s Dawn newspaper reported.

PLL confirmed the default at the weekend and issued a statement: “This bid default of the suppliers is associated with the recent supply shortages leading to high price volatility in the spot market coupled with extra buying in North Asia,” PLL said over the weekend.

PLL did not name the LNG player to have defaulted, only referring to the party as “the lowest bidder” as part of a supply tender it launched in November last year – seeking two spot cargoes for February 20201.

Bid documents show ENOC was the lowest bidder with a bid of 20.85% of Brent crude, equivalent to USD 10.22/MMBtu, for a single cargo to be delivered to Pakistan between 23-24 February, with Socar the other successful bidder with a bid of 23.43% of Brent.

Gas Matters Today contacted ENOC to comment, however the firm did not reply by the time of publication.

PPL suggested that its default experience is not an isolated incident, and suggested firms are reneging on contracts in a bid to make greater profits on spot LNG sales into Asia.

“There is news in the market about numerous global companies defaulting on their bids, or even contracts in some cases, given the supply shortages and extremely volatile prices. It is worth mentioning that the suppliers who have regretted to supply after bidding in the PLL tender include state-run entities and major international LNG traders,” PLL said in a statement.

The price of spot LNG has risen to a price around triple to what ENOC bid in PLL’s tender, with a perfect storm of cold weather in Asia, coupled with low LNG storage levels in the region and a tight shipping market, resulting in the spot price hitting a reported ~USD 32/MMBtu earlier this month. Meanwhile, the February dated Japan/Korea Marker (JKM) price is currently ~USD 18/MMBtu.

PLL said it is taking all measures available under law and PLL’s tender process, including forfeiture of bid bonds – of a reported USD 300,000 – against bidders who failed to supply cargoes as per their bids.

The default comes amid growing gas shortages in Pakistan, with the shortages leading to some downstream consumers searching for alternatives such as LPG and diesel fuel, according to reports.

Last month the main distribution companies began to inform non-exporting companies that they might stop receiving gas supplies as the state-run transmission firms faced deciding which customers would continue to receive natural gas. That situation might now be prolonged. Pakistan’s Cabinet Committee of Energy (CCoE) was to meet Monday to decide on whether the discontinuation of gas supplies to a large number of industries would be on a long-term basis, according to local media reports.

PLL attempted to ease concerns over the gas shortage.

“February being a low demand month, Pakistan has imported 7.75 cargoes in the month of February, on average, in the last four years. At this time, a total of 8 cargoes are secured,” PLL said at the weekend.

“PLL is working with the respective users to reconfirm demand at the current prices and is exploring alternatives if demand for an additional cargo in February is reconfirmed. PLL had already advertised unused capacity in its terminal for February 2021 and private sector may bring in additional LNG, which would be additional,” the state-owned LNG player added.

Meanwhile the CCoE is to review the overall gas situation due to the default and the shortages for various sectors, Dawn reported, adding that the committee might approve long-term policy guidelines to phase out electricity generation by the industrial sector on local gas, particularly for power generation through captive power plants.

This course has also been recommended by the Petroleum Division, the daily reported, saying that the government agency supports discontinuing the supply of natural gas as of 1 February to all industrial units that are using it primarily to generate electricity for their own consumption, with some exceptions.

Source: Gas Strategies

Follow on Twitter:

Tweets by "GasStrategies"
Tags: ENOCGas Matters Todaygas strategiesJKMLNGLNG storagePakistanPakistan LNG Limited
Editor

Editor

Related Posts

Natural gas prices down by over 40% across key gas markets
LNG Contracts & Pricing

Natural gas prices down by over 40% across key gas markets

6 days ago
Global gas price correlation remains strong
LNG Contracts & Pricing

Global gas price correlation remains strong

2 weeks ago
Henry hub prices slide below $3
LNG Contracts & Pricing

Henry hub prices slide below $3

2 weeks ago
Global gas supply to tighten in 2023
LNG Contracts & Pricing

Global gas supply to tighten in 2023

4 weeks ago
Monthly spot LNG prices for delivery to Japan for November 2022
LNG Contracts & Pricing

Monthly spot LNG prices for delivery to Japan for November 2022

1 month ago
Asian LNG prices are now at a $3/MMBtu premium to European LNG prices
LNG Contracts & Pricing

Asian LNG prices are now at a $3/MMBtu premium to European LNG prices

1 month ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result

Trending Posts

Natural gas prices down by over 40% across key gas markets

Natural gas prices down by over 40% across key gas markets

6 days ago
LNG-prices

Weekly trend of natural gas and LNG prices – January 23

2 weeks ago
Freeport-LNG

Freeport LNG completes repairs

2 weeks ago
Load More

Recent Post

Weekly trend of natural gas and LNG prices – February 06

Weekly trend of natural gas and LNG prices – February 06

17 hours ago
Feedgas flows to Freeport LNG surge ahead

Feedgas flows to Freeport LNG surge ahead

3 days ago
LNG-prices

Weekly trend of natural gas and LNG prices – January 30

6 days ago
Natural gas prices down by over 40% across key gas markets

Natural gas prices down by over 40% across key gas markets

6 days ago
Spot LNG trade fell in 2022

Spot LNG trade fell in 2022

2 weeks ago
Global gas price correlation remains strong

Global gas price correlation remains strong

2 weeks ago
Load More

Online platform for sharing analysis and information on Global and regional LNG markets. Weekly newsletter each Wednesday more info

Categories

  • Asian LNG
  • Australian LNG
  • European LNG
  • Global LNG
  • LNG Africa
  • LNG Bunkering
  • LNG Latin America
  • LNG North America
  • LNG Projects
  • LNG Trade and Pricing
  • Middle East LNG
  • Small Scale LNG
  • FLNG

Recent Posts

Weekly trend of natural gas and LNG prices – February 06

Feedgas flows to Freeport LNG surge ahead

Weekly trend of natural gas and LNG prices – January 30

Energise your Wednesday!

Sign up to receive our weekly newsletter with new LNG market reports, presentations & analysis. Every Wednesday!

By signing up, I agree to our TOS and Privacy Policy.

© 2020 GlobalLngHub | All Rights Reserved

No Result
View All Result
  • Premium Content
    • All
    • Asian LNG
    • Australian LNG
    • European LNG
    • FLNG
    • Global LNG
    • LNG Africa
    • LNG Bunkering
    • LNG Latin America
    • LNG North America
    • LNG Projects
    • LNG Trade and Pricing
    • Middle East LNG
    • Small Scale LNG
    • Others
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Newsletter
  • Videos
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
  • Subscribe
  • My account
  • Login

© 2020 GlobalLngHub | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT

Energise Your Wednesday!

SIGN UP to receive our weekly newsletter with new LNG market reports, presentations & analysis. EVERY WEDNESDAY!

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?