Italian oil major Eni, China's overseas energy unit

PetroChina and two trading houses are vying to supply

liquefied natural gas (LNG) to Pakistan in one of the largest
tenders ever worth billions of dollars, two sources familiar
with the matter said on Friday.
The 240-cargo 10-year tender, which is likely to be worth from $5
billion to $6 billion according to Reuters calculations and the
estimates of another source based on current market conditions, was
issued last month and closed on Thursday.
Pakistan is expected to be a significant growth driver in global LNG
demand, with WoodMac estimating the country will need 25 million
tonnes a year as domestic supplies dwindle and its economy grows.
That would make it a top-five LNG buyer.
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The companies that placed the offers are Eni, the trading arm of Azeri
state oil company SOCAR, PetroChina International Singapore, a unit
of PetroChina Co Ltd and global trading house Trafigura, the sources
said.
“The technical bids for our long-term LNG supply tender were
received and opened yesterday. Evaluations are underway,” Pakistan
LNG said in emailed comments to Reuters. The company did not say
who bid.
PetroChina, Trafigura, Eni and SOCAR did not respond to emails
requesting comment.
The tender is keenly watched due to its size and because Pakistan,
gripped in an anti-corruption drive under the government of Prime
Minister Imran Khan, is expected to publish the lowest prices offered
by the companies.
This will give a valuable insight into the opaque LNG market, which is
characterised by closed bilateral trades, secret long-term supply
agreements and an over-the-counter spot market.
Commercial offers are expected to be opened on Aug 2, one of the
sources said, which is when tender issuer Pakistan LNG is likely to
announce the prices.
The largest tender in recent years was issued by Egypt in October
2016 for 96 cargoes, but that was for a two-year period between 2017
and 2018 after the country suffered an acute gas shortage.

Priced to Brent
Pakistan, like most Asian buyers, purchases LNG priced against Brent
crude oil expressed as a price slope, or percentage of the oil contract.
In the last short-term tender, Pakistan said the lowest offers came in
at 7.13 per cent and 8.54pc of Brent, or around $4.4 to $5.3 per
million British thermal units at the prices of that day on June 14.
But multi-year contracts in the past year have tended to use a higher
price slope — around 11 to 12pc. That would place the price tag for the
240 cargoes — over 15 million tonnes in total — at between $5 billion
and $6 billion.
Pakistan LNG issued the tender in early June to import 24