KARACHI – Two long-term suppliers – Eni SpA and Gunvor Group Ltd – defaulted on their agreements to supply two LNG cargoes to Pakistan in March, forcing the country to move towards the spot market for procurement, it emerged on Saturday.
Reports said that Pakistan LNG Ltd had issued two emergency tenders to buy two cargoes for the next month.
The two suppliers recently informed Islamabad about their inability to deliver LNG cargoes next month, Pakistan LNG Ltd told Bloomberg.
Pakistan would have to make new deals for LNG cargoes at higher rates as spot prices continue to soar in the international market due to global energy crunch.
Pakistan had purchased its most expensive LNG cargo ever in November after facing a similar cancellation, and has been avoiding additional purchases since then.
Authorities told the news agency that gas shortage is being analysed carefully, adding that the purchase of new cargoes depends on the prices offered by the bidders.
It’s looking for the cargoes to be delivered between March 2 and March 3 and from March 10 to March 11, Pakistan LNG Ltd said, adding that the offers are due on Feb 22.