Pakistan to acquire spot cargoes after long-term LNG suppliers bail

Pakistan LNG Ltd has issued a tender for two cargoes to be delivered next month, the international news agency said.

Two suppliers, Eni SpA and Gunvor Group Ltd, recently informed Islamabad about their inability to deliver cargoes scheduled for March, Pakistan LNG Ltd told Bloomberg.

A global energy crunch has resulted in LNG spot prices surging to levels that are too high for cash-strapped nations like Pakistan. The South Asian nation purchased its most expensive LNG cargo ever in November after a similar cancellation, and has avoided additional purchases since then.

Pakistan is “carefully” analysing its gas shortage, and will purchase cargoes depending on the prices they receive, Pakistan LNG Ltd told the news agency. It’s looking for the cargoes to be delivered between March 2 and March 3 and from March 10 to March 11, it said. The offers are due on Feb 22.

Eni’s LNG deliveries to Pakistan were disrupted after its supplier defaulted on obligations for an unspecified reason, the Italian company told Bloomberg in an emailed statement. “Eni is evaluating all contractual remedies, including legal actions,” the company said by email.

Gunvor declined to comment, the Bloomberg report said.