SOCAR offers record-low spot price in Pakistan LNG buy tender

SOCAR Trading has placed the lowest offer into a spot buy tender by Pakistan LNG Ltd for an LNG cargo for delivery in late August, according to a notice posted on the Pakistani company’s website.

SOCAR’s offer for the cargo is about 5.74% of Brent crude oil prices, according to the document.

This works out to about $2.20 per million British thermal units (mmBtu) for the cargo to be delivered over Aug. 27 to 28 and is a record low LNG price secured by the Pakistani company, Pakistan LNG said on its Twitter account.

This is lower than the Asian LNG spot price LNG-AS for August which on Friday was estimated to be about $2.35 per mmBtu.

Three other companies who had technically qualified for the tender placed offers ranging from 7.8% to 10.4% of Brent crude oil prices. They are Gunvor Singapore, PetroChina International Singapore and Trafigura, according to the notice.

The prices are expressed in the document as a “slope” of crude oil prices, a percentage of the Brent crude price, and are typically a pointer for the opaque spot LNG market.

Pakistan LNG has a separate tender to buy two LNG cargoes for delivery in September. That tender closes on Aug. 4.

Reporting by Jessica Jaganathan; Editing by Tom Hogue, Christian Schmollinger and Louise Heavens

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