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August 17, 2019

Pakistan Seeks LNG Cargoes As Global Glut Plunge Prices

The state-owned Pakistan State Oil Company has issued two tenders to buy a total of 120 cargoes of Liquefied Natural Gas (LNG) over five years, as LNG prices decline due to a global glut.

The move to place orders at this time will help countries to take advantage of cheap supplies and meeting their domestic demand. Pakistan’s call for cargoes is the biggest seen so far this year, according to a Reuters report.

The seller has to deliver two cargoes a month to a terminal at Port Qasim from January 2016 to December 2020, Pakistan State Oil (PSO) said in tender documents on its website. Both tenders carry a launch date of Monday, although the first one was issued late on Sunday. The tenders will close on December 10 and offers will remain valid until January 15, 2016, it said.

Pakistan has speeded up efforts to secure supplies to bridge the shortfall in supply and gap which reaches nearly 2 billion cubic feet a day during peak winter.

Last month, it signed an agreement with Russia to build $2 billion pipeline that will transport gas from the city of Karachi in southern Sindh to Lahore in the central Punjab province, helping to mitigate shortages in northern parts of the country.

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