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Pakistan to face severe gas crisis from January 2021 as LNG trading companies reluctant to bid

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Pakistan to face severe gas crisis from January 2021 as LNG trading companies reluctant to bid

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What happened :

A major gas crisis is expected in Pakistan, as early as January 2021, as for the first time ever no bids were received from LNG supplying companies for the first half of the coming year. Bids available for the second half of the year are at very high costs.

“The government may have to declare an RLNG emergency under the force majeure clause, enabling it to arrange LNG by putting the Public Procurement Regulatory Authority rules aside”, a top government official revealed to The News.

In the face of this evident crisis the government confirmed that it has a backup plan that will be shared in a day or two. In an attempt to find a solution, Energas CEO says Pakistan should get help from Qatar Petroleum. “LNG trading companies always cartelise the prices but the LNG producing country or company can offer lower bids,” said Energas CEO Anser Khan. An expert in the field, Khan stressed the importance of having bilateral talks with Qatar Petroleum.

The background :

 LNG trading companies did not offer bids for January as the Gorgan company of Australia which used to produce LNG from 16.5 million tons to up 18 million tons per year has shut its operations, creating an LNG shortage in the international market.

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