ISLAMABAD: Pakistan LNG Limited (PLL) has extended the bidding deadline for two spot liquefied natural gas (LNG) cargoes to November 10 after international suppliers reported technical difficulties with the government’s new electronic procurement system, The News reported.
The deadline was originally set for November 6, but prospective bidders reportedly encountered problems submitting offers through the Public Procurement Regulatory Authority’s (PPRA) newly introduced e-Pak Acquisition and Disposal System (EPADS) 2.0.
PLL has rescheduled both bid submission and opening for November 10 to allow more suppliers to participate and improve competition.
The state-owned company issued the tenders on November 4 following approval from the Prime Minister, seeking one LNG cargo for delivery between December 14 and 16 and another between January 9 and 11.
The procurement is intended to address anticipated gas shortages during peak winter demand.
However, Pakistan faces significantly higher international LNG prices, reportedly reaching around $32 per million British thermal units (MMBtu).
After accounting for insurance, war-risk surcharges, freight and port handling, the delivered cost is estimated at $33.50 to $34 per MMBtu, potentially increasing electricity generation costs at regasified LNG-based power plants.
Pakistan’s estimated LNG requirement stands at nine cargoes for December and 11 for January, but security concerns around the Strait of Hormuz have complicated supply arrangements.
Authorities are consequently seeking to arrange eight to 10 cargoes for each month.
