According to the second GtG agreement, Pakistan will not be able to purchase two LNG contract cargoes from Qatar in August at a price slope of 10.2 percent of Brent.
According to the aforementioned deal, which was set to be active in January 2022, the PTI administration utilised two cargoes each in November and December 2021.
The government has also released tenders seeking five LNG cargoes from the spot market for August, knowing that the LNG is not available in the spot market and, if it is, it is at the highest ever cost of $39.8 per mmBtu. This is due to the non-availability of two LNG term cargoes, which has further aggravated the situation in August.
Prior to this, Pakistan LNG Limited (PLL) issued tenders on three separate occasions, but only received one bid on the third occasion.
This means that the country will have a total of 7 LNG cargos with 700 mmcfd of gas in next month, with a shortfall of 500 mmcfd. To make up the shortfall, the PLL issued tenders for 5 cargos for the month of August. PLL anticipates that ENI, which defaulted in July, will deliver its terms cargo in August.
Mahnur is MS(development Studies)Student at NUST University, completed BS Hons in Eng Literature. Content Writer, Policy analyst, Climate Change specialist, Teacher, HR Recruiter.
