ISLAMABAD – Pakistan state owned Corporation cancels huge internationaltender worth billions of dollars.
State-owned Pakistan LNG has canceled a tender to buy liquefied natural gasover a 10-year period and may turn to the spot market instead, according toa report by Reuters.
The report stated that the company issued the tender in early June toimport 240 LNG cargoes of 140,000 cubic meters each for delivery over 10years via the second LNG terminal.
But it has decided to cancel the tender due to inadequate demand for thesuper-chilled fuel, one of the sources said.
(The company) has decided not to proceed with technical evaluation andopening of commercial offers as there is no demand against this tender. Sofor now, (the company) has decided to stop the process of long-termcommitment until it receives long-term demand for LNG.
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Pakistan is expected to be a significant growth driver in global LNG demandwith the cabinet recently approving five consortiums to go ahead with theirLNG terminal plans, said the report.
Pakistan LNG’s canceled tender was being keenly watched in the industry.The company was expected to publish the lowest prices offered by bidders,providing valuable insight into the opaque LNG market, which ischaracterized by closed bilateral trades, private long-term supplyagreements, and an over-the-counter spot market.
Italy’s Eni, China’s PetroChina, Azeri state oil company SOCAR andcommodities trader Trafigura had placed offers for the tender, sources toldReuters.
