Pakistani LNG Tender: Italians And Chinese

Are In A Vie
Pakistan is a significant player in global LNG demand. It is expected that Pakistan will buy
LNG of worth 5 billion to 6 billion dollars. Pakistani premier hinted to give the significant
tender to the lowest bidder. For this, Italian company Eni, Chinese company Petro china and
two trading houses are vying for the bid.
Reuters calculated and published the results. This tender will be for ten years, and
approximately 6 billion dollars of LNG will be delivered to Pakistan from Qatar.
The demand for LNG in Pakistan
Pakistan is a major buyer of LNG because of massive consumption. The use of LNG is
abundant in vehicles all over Pakistan. Almost half of the domestic cars use LNG. Moreover,
LNG is used as domestic fuel and industrial production of power.
Some major power producers are also planning to shift their production on LNG.
The process of bidding
The method of bids is underway in Pakistan. Pakistan LNG is accepting proposals.
Sources said that Italian energy company Eni, the Azeri state oil company, Petro China of
Singapore, and global trading house Trafigura had placed the bids. The bids will be open on
the 2nd of August.
Prime Minister of Pakistan will sanction the order and award the contract to the lowest bidder
for ten years.
Past controversy in LNG tender
LNG tender award was under dispute in Pakistan. Former Pakistani premier Shahid Khaqan
Abbasi is facing a trial for awarding the contract to favourite business companies.
The former prime minister was the Minister of Petroleum when LNG contract was awarded.
That award of the deal was brought into the court by the other vying business companies.
Now, Shahid Khaqan Abbasi is under NAB custody and investigations are proceeding. It is
rumoured that 15 companies placed the bid, but Minister of Petroleum Shahid Khaqan Abbasi
did not award the contract to the lowest bidder. But the contract went to another company
with a higher bid.
LNG contract holds a grieve significance in the progress of the Pakistani economy. The
smooth and economical delivery of LNG will put the economy on a faster pace. The needs of
domestic and commercial users will be fulfilled for the next ten years due to this contract.