Pakistan LNG Limited (PLL) has awarded a contract to commodities trader Vitol to deliver a liquefied natural gas (LNG) cargo in December. This is the country’s first spot purchase in over a year. PLL had invited bids for two spot LNG cargoes for delivery in early and mid-December. Vitol and Trafigura submitted bids, with Vitol offering a lower price of $15.97 per million British thermal units (mmBtu) for the first delivery window. Asian spot LNG prices have risen due to increased demand in Asia and supply concerns in Europe, reaching $15/mmBtu. Pakistan has faced challenges in spot purchases of LNG due to high prices after Russia’s invasion of Ukraine last year. This has led to power outages in the country, as natural gas accounts for over a third of power generation and local reserves are insufficient. PLL previously awarded a spot tender to PetroChina in June 2022, and in June this year, it issued tenders for nine LNG cargoes but did not finalize any due to high prices.
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