World energy giants eye $6 billion mega energy deals with Pakistan

Shares
World energy giants eye $6 billion mega energy deals with Pakistan

*LONDON/SINGAPORE - World energy giants eye $6 billion mega energy deals with Pakistan in the coming months.*

Italian oil major Eni, China’s overseas energy unit PetroChina and two trading houses are vying to supply liquefied natural gas (LNG) to Pakistan in one of the largest tenders ever worth billions of dollars, two sources familiar with the matter said on Friday.

The 240-cargo 10-year tender, which is likely to be worth from $5 billion to $6 billion according to Reuters calculations and the estimates of another source based on current market conditions, was issued last month and closed on Thursday.

Pakistan is expected to be a significant growth driver in global LNG demand, with WoodMac estimating the country will need 25 million tonnes a year as domestic supplies dwindle and its economy grows. That would make it a top-five LNG buyer.

The companies that placed the offers are Eni, the trading arm of Azeri state oil company SOCAR, PetroChina International Singapore, a unit of PetroChina Co Ltd and global trading house Trafigura, the sources said.

“The technical bids for our long-term LNG supply tender were received and opened yesterday. Evaluations are underway,” Pakistan LNG said in emailed comments to Reuters. The company did not say who bid.

PetroChina, Trafigura, Eni and SOCAR did not respond to emails requesting comment.

The tender is keenly watched due to its size and because Pakistan, gripped in an anti-corruption drive under the government of Prime Minister Imran Khan, is expected to publish the lowest prices offered by the companies.

OpEd