Pakistan seeks LNG spot cargoes to cover canceled shipments

Pakistan is seeking to buy liquefied natural gas cargoes from the spot market after two long-term suppliers weren’t able to fulfill commitments to deliver shipments in March, according to people with knowledge of the matter.

Pakistan LNG Ltd. has issued a tender for two cargoes to be delivered next month, the people said, asking not to be identified. Two suppliers, Eni SpA and Gunvor Group Ltd., recently informed the South Asian LNG importer about their inability to deliver cargoes scheduled for March, Pakistan LNG said in an emailed response to Bloomberg on Thursday.

A global energy crunch has resulted in LNG spot prices surging to levels that are too high for cash-strapped nations like Pakistan. The South Asian nation purchased its most expensive LNG cargo ever in November after a similar cancelation and has avoided additional purchases since then.

Pakistan is “carefully” analyzing its gas shortage, and will purchase cargoes depending on the prices they receive, Pakistan LNG said in its reply. It’s looking for the cargoes to be delivered between March 2 and March 3 and from March 10 to March 11, the people said. The offers are due on Feb. 22.

Eni’s LNG deliveries to Pakistan were disrupted after its supplier defaulted on obligations for an unspecified reason, the Italian company said in an emailed statement. “Eni is evaluating all contractual remedies, including legal actions,” the company said by email. Gunvor declined to comment.