August 2022 saw only one LNG tender imported by the private sector. This was one better than no private significances a month before. Pakistan managed to arrange seven LNG loadings in August 2022, of which six were imported under PSO’s colorful long- term arrangement. The six loadings by PSO were unevenly resolve between the long- term deal with Qatar at13.37 percent pitch and10.2 percent with another private supplier.
This was also the first time Pakistan strategically arranged more loadings on10.2 percent pitch, which played a big part in keeping the weighted average cost of RLNG down. The RLNG volume imported in August 2022 is by far the smallest since April 2020, when Covid was peaking. It’s also the common- smallest ever ago at least January 2019
No, Pakistan’s demand has not suddenly gone down, despite arising signs of retardation in demand. There just isn’t enough RLNG available in the spot request, as Europe rushes to bid at extravagant rates. The fact that Pakistan went all out in earning LNG at all costs in May 2022 isn’t lost on anybody, and that strategy has correctly taken the backseat now, with the authorities making a deliberate attempt to keep the balance of payment in check.
September 2022 pledges to be important of the same, with the former tender failing to attract any flings for any window of the month. There may or may not be more attempts made to throw another tender for September, but chances of that going through remain veritably slim. Unless events in the Russia- Ukraine war take a dramatic turn, the pause could well go deep into layoffs. While it may not be hurting much right now, layoffs could be tougher due to increased heating demand.
The cost itself for August at an average$16.9/ mmbtu for SNGPL and$17.5/ mmbtu for SSGC is the smallest in four months. For reference, imported LNG cost had surpassed$ 21/ mmbtu in June 2022 banning GST. This will also forebode well for the headache that the yearly power tariff adaptations have come, although, it comes at a cost of forced cargo operation and switching to other thermal energies.
The import bill at around$ 320 million for August 2022 is now near to the mean, although the cost remains vastly advanced from last time. Pakistan is now trying to arrange further LNG under long- term 5- time contracts to insure force security, with Brent pitch agreement, rather of risking it all in the spot request. The coming many months will be tough, both in terms of LNG vacuity and overall cost.
