PLL awards LNG contract at record high price of $30.6 per mmbtu

Ibn-e-Ameer

Pakistan LNG Limited (PLL) has awarded an LNG contract at a record high price of US$30.6 per mmbtu for a window of November 26-27.

It received a bid of over US29 per mmbtu for LNG imports.

Two firms Gunvor and ENI had defaulted on LNG cargoes.

Following this, PLL had floated a tender for emergency LNG cargoes.

Vitol had offered a bid of US$29.8 per mmbtu for one cargo for a window of 19-20 November 2021.

However, another bidder Qatar Petroleum had submitted a bid of US$30.6 per mmbtu for a window of November 26-27.

However, PLL has to take a decision yet.

Ogra again notifies increase in LNG price

If PLL rejects, there will be a crisis of gas in the winter season. If it accepts there would be a lot of criticism for procuring LNG at the highest-ever rates in history.

The PLL has been facing criticism for the lack of proper strategies to arrange LNG cargoes when the prices of LNG were lower in the international market.

It had used all tactics to create its monopoly and did not allow the private sector to import LNG when prices were not too high.

Now, it had floated a tender to allow utilization of the idle capacity of the second LNG terminal when it failed to import LNG.

Now, the consumers were not only facing a threat of gas crisis but they should be ready to pay higher prices for gas. Even, if PLL rejects these bids which were too high, the consumers will have to pay the cost of capacity payment.

Moreover, the petroleum division is running PLL-the company dealing with multibillion rupees deals through Adhoc arrangements for a long.

Masood Nabi Managing director GHPL is currently running PLL. He had no prior experience of heading an energy company. He had worked as executive director OGDCL. The company board of directors had refused to extend his contract.

However, the PTI government had appointed him as managing director GHPL and now he is currently dealing with lucrative deals of LNG. Since he took acting charge of PLL, the government is facing a crisis of arranging LNG procurements.