ISLAMABAD: Pakistan has purchased an all-time high priced Liquefied Natural Gas (LNG) since the country began LNG imports in 2015.
According to the reports, Pakistan bought four cargoes for September delivery at more than $15 per mmbtu (per per million British thermal units), forcing the country to pay more than ever for the power plant fuel.
LNG rate for September 6-7 is $15.397 mmBtu, for September 12-13 is $15.497 mmBtu and the rate for September 17-18 is $15.397 mmBtu. Gunvor will deliver the three cargoes.
PetroChina will provide LNG cargo on September 27-28 at $15.199 per mmBtu. These cargoes will be delivered between September 6 to September 28.
This comes as initially, state-owned Pakistan LNG Limited (PLL) first cancelled the tender of eight cargoes for September and October, arguing that the rates were higher at $13.78 per mmBtu, but now it has procured four cargoes at the highest-ever rates.
The purchase would put the burden on the already cash-strapped Pakistan economy, which battles a widening current account deficit amid rising in the import bill.
Meanwhile, Pakistan LNG Limited (PLL) is also going to announce tender under the Public Procurement Regulatory Authority (PPRA) rules for the months of October and November fearing that the rates will increase up to $20 per mmBtu.
On other side, the government says that at present there is an LNG prices crunch in the international market and it is difficult to predict the future trend of the LNG prices.
It is to be mentioned here that PLL earlier got bids in the range of $10.2937 per mmBtu to $11.7747 per mmBtu for July cargoes and $10.51 to $10.8312 per mmBtu for cargoes to be delivered in August.