The country’s biggest supplier currently is Qatar, with which it signed a deal in 2016 for 3.75 million tons of LNG a year for 15 years
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 a tender worth billions of dollars.
The 240-cargo 10-year tender, worth up to $6 billion according to Reuters, was issued last month and closed on Thursday.
Pakistan is expected to be a significant top-five growth driver in global LNG demand, with WoodMac estimating the country will need 25 million tons a year as domestic supplies dwindle and its economy grows.
Eni, the trading arm of Azeri state oil company SOCAR, PetroChina International Singapore, a unit of PetroChina Co. Ltd. and global trading house Trafigura have reportedly all made offers.
“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 tender is keenly watched due to its size and because Pakistan, gripped by an anti-corruption drive under the government of Prime Minister Imran Khan, is expected to publish the lowest prices offered by the companies.
This will give a valuable insight into the opaque LNG market, which is characterized by closed bilateral trades, secret long-term supply agreements and an over-the-counter spot market.
Commercial offers are expected to be opened on Aug. 2, said a source, which is when tender issuer Pakistan LNG is likely to announce the prices.
Pakistan, like most Asian buyers, purchases LNG priced against Brent crude oil expressed as a price slope.
The country’s biggest supplier currently is Qatar, with which it signed a deal in 2016 for 3.75 million tons of LNG a year for 15 years. It also has a separate 15-year agreement with Eni.
