PLL Scraps LNG Spot Purchase Bid Of $39.8/Mmbtu.

ISLAMABAD -- Pakistan LNG Limited (PLL) has scrapped the LNG spot purchase bid of $39.8/mmbtu it received for the month of July as it will increase the generation cost of the RLNG based power plants by almost 20 per cent.

'We are not awarding the contract to Qatar Energy, which had quoted $39.80/mmbtu for delivery in July 30-31 window as it was too expensive,' official source told The Nation.

The new bid is almost $39.800/mmbtu which will push the cost of RLNG based power plants to Rs 35/unit in July, which is expensive than furnace oil, coal and even HSD. Pakistan LNG Ltd (PLL) had received poor response from suppliers and against tenders of four liquefied natural gas (LNG) cargoes in July. The state owned company has got only single bid at $39.80/mmbtu. PLL has procured two LNG cargoes for the month of May at $29.6700/mmbtu and $24.1500/mmbtu. However, the cost of the RLNG based power was almost Rs28/unit, which was higher than coal based power generation and only Rs2/unit less than HSD during the month.

On the other hand in May the per unit generation cost of coal, HSD and furnace oil based electricity was Rs 18, Rs 30 and Rs 33.67/unit respectively. Therefore the government is considering coal, HSD and furnace oil better option than LNG during July. The prices of crude oil have reduced...