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Next LNG importing giant Pakistan readies for buying spree
Pakistan LNG Ltd has launched a mid- and a long-term tender to purchase a combined 240 shipments of liquefied natural gas (LNG), the company said on its website, as the country emerges to become a major gas importer.
Pakistan, which can only meet around two-thirds of its gas demand, is expected to issue further tenders seeking twice as much supply to fill out remaining capacity at its new import terminal at Port Qasim, in the commercial capital Karachi, according to one Pakistani energy expert.
The mid-term tender covers a period of five years and calls for 60 shipments, while the long-term tender is for 15 years and 180 cargoes, according to information presented in the tender documents released on the company’s website on Tuesday.
Suppliers must submit bids by Dec. 20.
Pakistan has ploughed billions of dollars into LNG infrastructure, including the construction of a second LNG import terminal and pipelines linking Karachi with Lahore in the Punjab region, the nation’s industrial heartland.
The current crop of tenders are a small part of Pakistan’s projected demand as the country works to bring two more import terminals online within the next couple of years, making it a potent force in global gas markets.
The country first began buying LNG last year and has already contracted supplies from trading firm Gunvor and Qatargas, the world’s biggest LNG producer.
Cheap gas is tempting out new importers from the Middle East to Africa and Asia, helping stave off a deeper price rout hurting producers’ bottom lines.
Cheaper than fuel oil and cleaner-burning than coal, LNG suits emerging economies racing to bridge electricity shortfalls and support growth on tight budgets.
The Port Qasim LNG terminal, which is due to go online in mid-2017, has a capacity of 600,000 million cubic feet per day.
“This tender is for 200 million cubic feet. That means another 400 million will need to be tendered out soon,” said the industry source.
A Pakistan LNG official in September said the country was working on commercial as well as government-to-government LNG deals. Tom Rathman Womens Jersey
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