By Staff Reporter
KARACHI: Pakistan is looking to buy spot liquefied natural gas (LNG) cargoes for the first time since July 2022, as Asian prices ease from record highs and the country faces a gas shortage that has led to power outages.
Pakistan LNG Ltd., a state-owned company that procures LNG from abroad, issued two tenders on Tuesday seeking a total of nine cargoes for delivery in October, December, January and February, according to its website.
The tenders close on June 20 and July 14.
The move comes as Pakistan struggles to secure enough gas for its power plants and industries amid a foreign exchange crunch and geopolitical tensions.
The country has been relying mainly on long-term contracts with Qatar and ENI SpA for its LNG imports, which fell 16 percent to 6.93 million metric tons in 2022 from a year earlier.
Pakistan also announced on Tuesday that it had signed a deal with Azerbaijan to receive one LNG cargo per month at a “cheaper price,”
Petroleum Minister Musadik Malik did not provide further details on the agreement but said it will “start soon.” “Prices are much lower than the international market.”
Pakistan last sought spot cargoes in July 2022, but received no bids.
The minister also refused to disclose the terms of oil purchase from Russia, but assured the country was getting favorable rates.
Malik at a press conference held in Islamabad said he was bound by a contract not to reveal the commercial details of the deal, which he said was comparable to any other country’s agreement with Russia.
On Sunday, Pakistan received its first Russian oil cargo in 75 years, a shipment of 45,142 metric tons of Ural Oil, the second lightest crude available. Malik said Pakistan planned to import one-third of its oil needs from Russia and pass on the benefits to consumers.
The minister said the crude had been tested for compatibility with Pakistani refineries, which rely mostly on Arabian light crude due to outdated technology.
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