Pakistan is likely to expect other gas crises in the coming summers after a Singapore-based LNG retract from delivering four LNG cargoes. Pakistan LNG Limited (PLL) decided to cancel procurement for the next month at prices of $34.677 per MMBTU. That was offered by Vitol Bahrain in the bids. According to the contract by GUNVOR – A Singapore-based company cargoes were to be delivered in the months of April, May, and June as per the five-year contract that was supposed to end in July 2022.
PLL and GUVNOR liaised on a five-year contract in 2017. The contract had the Singaporean company provide the LNG term cargoes at 11.6247% of Brent. However, due to the reasons unbeknown. The companies draw backed several times in previous years making the total to seven times. The cargoes were supposed to arrive in the committed months and years mentioned in the contract. Above all the GUNVOR informed of the time delay and cannot process to deliver. The cancellation of four-term cargoes has upset the petroleum division authority. As the demand may cause perturbation to the people of Pakistan in the coming summer. As a result causing a gas crisis in the summer.
Heeding to the situation. Petroleum Division will cut RLNG gas supply to the CNG sector. And curtail imported gas supply by 50% according to a senior official of the petroleum department. The shortage has also led the Sui gas companies to contemplate the situation. As the sui northern and sui southern could not cater to the entire requirement for the power sector. They can only supply 500mmcfd at the highest. The gas supplied to the power sector is 400mmcfd with the need to arrange 100 mmcfd for the coming month exclusively. After the closure of the gas supply to the CNG sector. Other than PSO, to opt for Rs 60 billion to make certain the import of 23 fuels cargoes required to fulfill the month of April. In line with the PSO to import 17 cargoes of fuel, they will import 23 cargoes.
The Energy Ministry confirmed having eight LNG Cargoes for April. PSO (Pakistan State Oil) along with PLL will import seven and one cargoes. Although the eight cargoes are to be imported. The authorities are uncertain whether the PLL will be able to manage the term from ENI.
