Pakistan Issues Tenders for Import of Three LNG Cargoes
The state-owned liquefied natural gas (LNG) importer, Pakistan LNG Limited (PLL), has issued tenders for the import of three LNG cargoes of 140,000 cubic meters each, for March 2021, amidst increasing demand for energy caused by the winter season.
PLL floated a tender to import LNG cargoes of 420,000 cubic meters through an advertisement, saying that the country is seeking this LNG to be delivered in three delivery windows, on March 9-10, March 16-17, and March 22-23 on a delivered ex-ship basis. The deadline to submit bids for the tender is January 15.
The petroleum division has informed that the city loads have already increased by more than 9 percent in Sui Northern Gas Pipelines Limited (SNGPL) due to a severe cold wave. Sui Southern Gas Company (SSGC) also faces a similar situation in Karachi and Quetta.
According to the estimates, every 1 degree Celsius decrease in the temperature translates into an additional six mmcfd demand per day. This is in addition to the usual daily gas demand of approximately 7.5 billion cubic feet per day. Currently, the local production of LNG is short by 3.5 billion cubic feet per day as compared to the daily demand.
Oil and Gas Regulatory Authority (OGRA) predicts this supply-demand gap to rise even further, to approximately 2.7 billion cubic feet by 2023 and 4.8 billion cubic feet by 2028. This gap is filled through imports.
LNG imports account for 24 percent of the country’s total import mix. In the past five years, approximately 19 million tons of LNG have been imported by Pakistan.