Karachi November 2 2021: Pakistan has issued an emergency tender to buy liquefied natural gas to cope with sudden supply disruptions as the peak winter season takes hold, according to people familiar with the matter.
Pakistan LNG Ltd. issued an tender for two cargoes to be delivered this month, an unusually prompt timeframe, according to a notice on the company’s website. The purchases for Nov 19-20 and Nov. 26-27 come after two previously bought cargoes won’t be delivered in time, the people said, asking not to be identified. Offers are due on Friday.
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The last-minute tender is a setback for Pakistan, which last week decided to stay away from the market because of high prices. That was the latest sign that this year’s rally has started to curb demand, as governments and industries skip pricey purchases, a move that could force the nation’s government to ration supplies.
The cargoes that won’t be delivered were set to be supplied by Italy’s energy giant Eni SpA and commodities trader Gunvor Group Ltd., one person said. The suppliers backed out with a 30% penalty, which is envisaged in contracts if the supplier cannot provide the shipment, according to the person.
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Gunvor won’t be able to deliver the LNG after its own supplier in Equatorial Guinea declared force majeure, one person said. The trader declined to comment. Eni couldn’t immediately comment.
Pakistan’s energy outlook for the winter season is “not good,” Planning Minister Asad Umar said in an interview last month. The nation’s spending on LNG more than doubled to $1 billion in the quarter ended September, Pakistan Bureau of Statistics data show.
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