Just two days after Pakistan received final approval to borrow $3 billion from the International Monetary Fund (IMF), the crisis-hit country’s request to buy liquefied natural gas received a response from the supplier for the first time in more than a year.
Last month, Pakistan failed to get LNG from the spot market in its first attempt in nearly a year, as no supplier agreed to offer the cash-strapped country.
Traders said on condition of anonymity that Pakistan LNG Ltd’s (PLL) bid to buy six shipments for October to December had closed, but none of the companies responded to the offer. Bloomberg had reported.
According to the latest update, Trafigura Group has offered two LNG shipments for January to February delivery, traders with knowledge of the matter said.
According to the media outlet, this step has been taken when the government financial condition of Pakistan is improving. The country secured final approval to borrow $3 billion from the IMF earlier this week, opening the way for the long-awaited loan that will help ease its dire need for cash.
According to traders, the shipment offered by Trafigura is priced at about 30% premium to the current market prices. Typically, the spot purchase of fuel will be sold at a level similar to market prices.
Pakistan will not float tenders till July 31 and it is still unclear whether the country will go ahead with buying the fuel. Credit risk was a deterrent preventing LNG suppliers from selling spot shipments in the country.