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  • News Desk
  • Jan 18th, 2018
  • Comments Off on LNG cargoes likely to be awarded today
Pakistan LNG Limited is likely to award the liquefied natural gas (LNG) cargoes for March to three lowest bidders today (Thursday). According to commercial evaluation report released by Pakistan LNG Limited trading companies Vitol, Trafigura and B B Energy submitted the lowest bids in a tender to supply Pakistan with four LNG cargoes for March. The commodity traders quote lower price of LNG as compared with cargoes for February.

An official of LNG Limited said that notification regarding award of contracts to lowest bidders for March delivery would be issued today (Thursday). He said the notification of award of contracts should be issued on January 11, but delayed due to some reason. State-run Pakistan LNG closed bidding on December 26, 2017 with four delivery windows in March.

Five companies took part in the tender including Gunvor, Vitol, Trafigura, B B Energy and DufEnergy, stated Pakistan LNG's commercial evaluation report. Vitol submitted the most competitive bid for March 8-9 delivery window at 15.9147 percent of Brent. The Swiss-based trader also had the best bid for March 22-23 window at 13.8301 percent of Brent, according to the document.

For the March 17-18 delivery window, Trafigura had the lowest bid at 15.0591 percent of Brent while for the March 27-28 slot B B Energy had the lowest bid of 13.2701 percent of Brent.

The cargoes will be delivered on a DES basis to the recently opened Pakistan Gas Port's FSRU-based LNG import terminal at Port Qasim or another LNG terminal within Pakistan, Pakistan LNG previously stated. Earlier, same companies technically qualified for supply of four cargoes in February 2018 at higher rates compare with LNG cargoes in March 2018.

BB Energy submitted the most competitive bid for the February 6-7 delivery window at 15.731 percent of Brent. Gunvor had the best bid for the February 16-17 window at 16.0857 percent of Brent. For the February 21-22 delivery window, Trafigura placed the best bid at 15.8488 percent of Brent while for the February 26-27 slot Trafigura again had the lowest bid of 14.9887 percent of Brent. Short-Term Energy Outlook by the US Energy Information Administration reveals that crude oil prices will average $57/b in 2018. Commodities traders predict the price of oil in their futures contracts anywhere from $48/b to $68/b in March 2018.

Copyright Business Recorder, 2018


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