KARACHI: Pakistan has failed to secure liquified natural gas (LNG) from the spot market in its first attempt in about a year, as no supplier seems to budge to the cash-strapped nation’s offer, Bloomberg reported.
Traders, on the condition of anonymity, told the publication that Pakistan LNG Limited’s (PLL) bid to purchase six shipments for October to December closed Tuesday with no companies responding to the offer.
The report said that many overseas banks weren’t accepting letters of credit Pakistani counterparts to purchase LNG shipments, making suppliers reluctant to offer cargoes, Bloomberg reported last week.
Pakistan is struggling with a weakening currency, political turmoil, and an increasing risk of a sovereign default. The International Monetary Fund recently criticized the government’s budget as insufficient to meet the goals of its bailout program, a sign that a deadline this month to unlock aid will not be met.
Pakistan’s inability to buy gas will aggravate energy shortages in the country, increasing the frequency of blackouts and curbing the supply of fuel to industrial consumers.
The nation was hit hard by the energy crisis spurred by Russia’s invasion of Ukraine last year due to its high dependence on imports. Several similar tenders by Pakistan last year also failed to gain offers from suppliers.
Recently, Pakistan approved a liquefied natural gas (LNG) purchase agreement framework with Azerbaijan.
