Gunvor, Shell to Supply LNG to Pakistan

Gunvor and Royal Dutch Shell have won short term contracts to supply LNG to Pakistan.

The Express Tribune newspaper reported Tuesday the two firms got the contracts after financial bids offered in response to two tenders floated by Pakistan State Oil (PSO) were opened. Eight companies participated in the tenders.

This development comes amid a delay in signing of a long term deal between Pakistan and Qatar. Both companies will supply 120 LNG cargoes over the next five years, the newspaper reported.

“Gunvor will supply 60 cargoes at 13.37 percent of Brent crude price and Shell will also supply the same 60 cargoes at 13.80 percent of Brent crude price,” an official told The Express Tribune.

Pakistan is facing severe energy crisis and looking at various sources to buy gas. The country produces four billion cubic feet of natural gas per day (bcfd) against the demand for over six bcfd.