Islamabad
Pakistan seems to witness gas crisis in the summer season after the Singapore-based Liquefied natural gas (LNG) trading company has withdrawn from the commitment to deliver LNG cargoes amid the worsening economic situation, said a media report.
While, Pakistan LNG Limited’s (PLL) decided not to buy the spot LNG cargo for April as its lowest price stands at USD 34.677 per Metric Million British Thermal Unit (MMBTU) offered by Vitol Bahrain, an energy and commodities trader, in the bids opened on Friday, Geo TV reported citing the Pakistani newspaper, The News International.
Another Singapore-based company, GUNVOR was supposed to deliver the LNG cargoes one in each April, May and two in June, mentioned in its five-year contract ending in July 2022.
PLL had signed a five-year contract with GUVNOR in June 2017 and according to the contract, the Singaporean company have to supply the LNG cargoes at 11.6247 per cent of Brent. Earlier, the company was pulled out of the contract thrice but this time it is over four times that GUVNOR has defaulted taking the number of defaults to seven times in total.
GUNVOR company was scheduled to ship the LNG cargoes on April 15, May 14, June 4 and June 9, 2022, but the trading company informed that they won’t be able to ship the LNG cargoes in the remaining time period of the term agreement, an official
“The authorities in the Petroleum Division are extremely perturbed over the cancellation of four-term cargoes as, under the new scenario, they will not be able to cater to the demand of gas needed for the power sector in the summer season,” a senior official privy to the development was quoted as saying by Geo News.
