Pakistan LNG awards tender to Vitol, first spot purchase in over a year

This representational photo shows an offshore LNG regasification terminal, the FSRU Toscana, is towed into Valletta's Grand Harbour July 1, 2013. (REUTERS/File)
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Updated 05 October 2023
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Pakistan LNG awards tender to Vitol, first spot purchase in over a year

  • Last week, PLL issued tender seeking two spot LNG cargoes for delivery on Dec. 7-8 and 13-14
  • It received bids from Vitol and Trafigura for the Dec. 7-8 delivery window at $15.97/mmBtu and $18.39/mmBtu 

Pakistan LNG Limited (PLL) awarded a tender to commodities trader Vitol for the delivery of a liquefied natural gas (LNG) cargo in December, a source with knowledge of the matter said on Thursday, making it the country’s first spot purchase in over a year.

Last week, PLL issued a tender seeking two spot LNG cargoes for delivery on Dec. 7-8 and 13-14. It received bids from Vitol and Trafigura for the Dec. 7-8 delivery window at $15.97 per million British thermal units (mmBtu) and $18.39/mmBtu respectively. It received one bid from Trafigura at $19.39/mmBtu for the Dec. 13-14 delivery window.

Asian spot LNG prices rose to $15/mmBtu last Friday on increased demand in Asia and supply concerns in Europe.

Grappling with high inflation and a foreign exchange crisis, Pakistan has struggled with spot purchases of super-chilled fuel after Russia’s invasion of Ukraine last year pushed prices to record highs, leaving the South Asian nation to face widespread power outages.

Natural gas accounts for over a third of power generation in Pakistan, and LNG imports are crucial as local gas reserves are insufficient to address growing electricity demand.

PLL last awarded a spot tender to PetroChina for the delivery of two LNG spot cargoes in June 2022, when China’s state-owned energy giant offered the lowest bids of $23.96/mmBtu for a June 1-2 delivery and $22.49/mmBtu for a June 28-29 delivery.

PLL had issued tenders in June this year, seeking a total of nine LNG cargoes for delivery from October to February, and received bids from Trafigura, but did not pick them up as the price levels were too high.


Bodies of Pakistani nationals who died attempting illegal migration repatriated from Iran

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Bodies of Pakistani nationals who died attempting illegal migration repatriated from Iran

  • Pakistan’s envoy in Tehran warns youth against human smugglers after deaths in harsh weather
  • Pakistan reported sharp fall in illegal migration to Europe this year amid nationwide crackdown

ISLAMABAD: The bodies of two Pakistani nationals, who died near the Iran-Türkiye border after attempting to travel illegally to Europe, have been repatriated to the country, said a senior diplomat on Tuesday, reiterating warnings against human smugglers amid an intensified crackdown by authorities in Islamabad on illegal migration.

Pakistan says it has stepped up action against illegal immigration and human trafficking in recent years, reporting a 47% drop in illegal migration to Europe this year and the arrest of more than 1,700 suspected human smugglers, according to official figures.

However, people continue to attempt dangerous irregular journeys in search of work and better economic opportunities abroad.

“The mortal remains of Pakistani nationals Mr. Armanullah s/o Gul Rahman and Mr. Ihtasham s/o Mukhtar Gul, both residents of Nowshera, have been repatriated to Pakistan through Taftan border earlier today,” Pakistan’s ambassador to Iran, Muhammad Mudassir Tipu, said in a post on social media platform X. “Both had fallen victim to the greed of human smugglers and lost their lives in extremely harsh weather conditions near Iran’s border with Turkiye.”

“I once again request the youth back home not to be trapped by human smugglers and instead follow the legal path to travel abroad,” he added, thanking the government of the Balochistan province in Pakistan for arranging the transportation of the bodies and offering condolences to the victims’ families.

The issue illegal immigration has drawn heightened scrutiny since 2023, when hundreds of people, including Pakistani nationals, died attempting to cross the Mediterranean Sea in an overcrowded vessel that sank off the Greek coast, prompting Islamabad to launch nationwide investigations into human smuggling and trafficking networks.

Authorities have since arrested Pakistani and foreign nationals at airports with forged travel documents, highlighting the scale of document fraud linked to illegal departures.

In September, the Federal Investigation Agency (FIA) released a list of more than 100 of Pakistan’s “most wanted” human smugglers and identified major trafficking hubs across Punjab province and the capital, Islamabad.

Earlier this month, Pakistan announced plans to roll out an artificial intelligence-based immigration screening system at Islamabad airport from January, aimed at detecting forged documents and preventing illegal travel abroad, as part of broader efforts to curb human smuggling and unauthorized migration.