Dutch energy firm expresses interest in LNG supply to Pakistan

ISLAMABAD: Vitol Resources, a Dutch energy and commodity trading company, has expressed interest in import of LNG supply to Pakistan, ARY News reported on Tuesday.

Vitol Resources Pakistan has applied for supplying Liquefied Natural Gas (LNG) to Pakistan.

Oil and Gas Regulatory Authority (OGRA) has invited recommendations from the stakeholders over the issue. The regulator will hold a hearing on the application of the Vitol Resources on October 11.

The group in its application said that it is supplying 20 billion cubic metres (BCM) of natural gas in Europe and America. The Vitol Resources have gas reserves in six countries across the globe, according to the interest letter.

According to international media, in July, Pakistan LNG Limited (PLL) received no bids in its tender to import 10 cargoes of LNG.

A spike in spot LNG cargo prices to $175-$200 million, from around $15-$20 million two years ago, has had a seismic impact on physical trading activity for many smaller players.

“Pakistan and Bangladesh emerge as big losers as both had procurement strategies with high percentage of spot purchase and were left to face power crisis this year,” said Felix Booth, head of LNG at data analytics firm Vortexa.

Rocketing LNG cargo prices have squeezed out dozens of smaller traders, concentrating the business in the hands of a handful of international energy majors and top global trading houses.

This grip is not expected to ease until 2026 when more liquefied natural gas (LNG) starts to materialise and lower prices, adding to supply worries for poorer states reliant on it to generate power and driving up costs for big Asia economies.