Pakistan State Oil denies buying costliest ever LNG cargo
State-run Pakistan State Oil (PSO) on August 3 denied it had bought Pakistan’s costliest ever cargo.
Dawn newspaper on August 3 reported that PSO purchased a cargo of LNG at $20.055/mn Btu, the highest ever not only in the country but perhaps the second highest summer purchase in the world. The newspaper added that the price was not made public to avoid criticism. This new controversy comes just days after the government justified the $15.5/mn Btu purchases by Pakistan LNG, another state-run company.
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“PSO has not awarded any cargo at $20.055. The bid received against the required delivery of August 29 & 30 was high, resulting in a price that was not acceptable to PSO and the tender was scrapped on July 27, 2021. PSO has retendered for the same delivery period on July 29, 2021,” the company said on Twitter.
The company also denied keeping the bid results secret, insisting that it "always maintains absolute transparency in all its business dealings and practices".
PSO said it has entered into a new long-term supply contract with Qatar Petroleum, with supplies starting in January 2022, and that this would further reduce the basket price of LNG being imported into the country. “Considering the higher demand in the upcoming winter season, PSO has exercised the option in the new QP contract for bringing four additional cargoes in November and December at the new contractual prices, which are expected to be much lower than the market price during winter," it said. The 10-year deal was signed in February this year.