Pakistan refused LNG supply for month of February.

ISLAMABAD -- The liquefied natural gas (LNG) suppliers have refused to provide Pakistan their supply for the month of February in the wake of the recent massive hike in gas prices, it was reported on Sunday.

The Pakistan LNG Limited (PLL) advertised a tender on November 28, 2020, for procurement of two spot LNG cargoes to be delivered in February, 2021.

On December 28, 2020, the bids were opened and the results were announced in accordance with the PPRA Rules.

The award intimation was made for 10 days later on 7 January 2021. The [first] spot cargo in mid-February was awarded to SOCAR Trading UK Ltd.

The second spot cargo, for the last week of February 2021, was awarded to the lowest bidder as per PPRA Rules, who conveyed inability to deliver as per its bid.

The PLL approached the second and third lowest bidders within the bid validity period, all of whom regretted to deliver the cargo at the prices they had offered in their respective bids.

This bid default of the suppliers was associated with the recent supply shortages leading to high price volatility in the spot market coupled with extra buying in North Asia.

There was news in the market about numerous global companies defaulting on their bids, or even contracts in some cases, given the supply shortages and extremely volatile prices.

The suppliers who had regretted to supply after bidding in the PLL tender include state-run entities and major international LNG traders.

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