| ISLAMABAD, Sept 6
ISLAMABAD, Sept 6 Pakistan plans to issue two
international tenders for 750,000 tonnes per year of liquefied
natural gas (LNG) each in the coming month, the head of the
country's state-owned LNG company said, as the South Asian
nation seeks to alleviate chronic energy shortfalls.
Pakistan's economy has long been hamstrung by crippling
energy shortages, with Prime Minister Nawaz Sharif under
pressure to end blackouts before the 2018 general election.
Adnan Gilani, head of Pakistan LNG, a new state-owned
company set up to manage procurement and supply of gas, said
firms from Australia, Malaysia, Russia, Qatar, the United States
and Azerbaijan are interested in the two tenders.
"We had over half a dozen participants bidding in our last
international tender and expect more than twice that number this
time around," Gilani told Reuters on Monday.
Gilani said the specifics of the tenders are being
finalised, but they will probably be a 5-year and a 15-year
offer, as well as a possible spot purchase.
Pakistan has ploughed billions of dollars into LNG
infrastructure, including construction of a second LNG import
terminal and pipelines linking the port city of Karachi with
Lahore in the Punjab region, the nation's industrial heartland.
Pakistan has been earmarked as an up-and-coming demand
outlet for the oversupplied LNG market. Qatar, which signed two
term supply contracts with Pakistan this year, is the country's
largest LNG supplier.
Pakistan is heavily reliant on expensive furnace oil imports
to plug energy shortfalls and officials expect the LNG imports
to lower the cost of energy in a nation of 190 million people.
Gilani said that Pakistan would also negotiate separate
government-to-government LNG deals.
"We have interest from more than five sovereigns to supply
LNG to Pakistan," he said.
Gilani said an impending glut in global LNG production means
Pakistan expects bids by international companies to be far below
those offered by trading house Gunvor, which won the last
Though Gilani would not discuss financial details, traders
say Gunvor offered a delivered price of 13.37 percent of a
barrel of crude oil for the 60-cargo supply tender between 2016
"We expect a substantial price decline because of the global
supply glut and new production coming on line in the short
term," he said.
(Reporting by Drazen Jorgic; Editing by Joseph Radford)