For the first time in more than one year Pakistan’s request to buy liquefied natural gas has received a response from a supplier.
The development comes two days after the International Monetary Fund (IMF) approved a $3 billion loan for Pakistan under a stand-by arrangement.
As no supplier seemed to take the cash-strapped nation’s offer, Pakistan failed last month to secure LNG from the spot market in its first attempt in about a year.
According to Bloomberg, Pakistan LNG Limited’s (PLL) bid to buy six shipments for October to December closed with no companies responding to the offer.
After the IMF deal, Trafigura Group has offered two LNG shipments for January to February delivery.
The shipments that Trafigura offered are priced roughly at a 30% premium to current market prices, according to traders. Typically, spot purchases of fuel would be sold at similar levels to market prices.
Pakistan won’t award the tender until July 31, and it still isn’t clear if the country will follow through with buying the fuel. Credit risk had been a barrier stopping LNG suppliers from selling spot shipments to Pakistan.
The IMF deposited $1.2 billion into the State Bank of Pakistan’s (SBP) account on Thursday, boosting the cash-strapped nation’s hope for economic stability, as it teetered on the brink of default for several months.
