Pakistan secures $4.5 billion LNG trade financing facility, LNG prices firm
Quantum Commodity Intelligence - Pakistan has secured $4.5 billion worth of three-year trade financing from Jeddah-based Islamic Trade Finance Corporation (ITFC) to cover import cost of crude, petroleum products and liquefied natural gas (LNG), according to local media reports.
A formal financing framework agreement on the arrangement would be signed early next week in Pakistan, reported Dawn newspaper. The funds would be utilized under Annual Financing Plan of roughly $1.5 billion each.
The trade financing arrangement is in addition to about $531 million already signed by Ministry of Economic Affairs with Saudi Fund for Development (SFD) for project financing of Mohmand dam, two coal-based projects and several hydropower projects, including two in Azad Kashmir.
The ITFC's financing would be utilized over three years (2021-23) by Pak-Arab Refinery Ltd (Parco), Pakistan State Oil (PSO) and Pakistan LNG Ltd (PLL) for import of crude oil, refined petroleum products and LNG and help augment the country's foreign currency reserves and provide resources to meet the oil import bill.
Pakistan is a major importer of LNG, including regular spot tenders.
Earlier this month, state-owned Pakistan LNG tendered for nine LNG cargoes for delivery in July and August.
Pakistan has two import terminals – one operated by Pakistan GasPort and one by Elengy. Both are at Port Qasim near Karachi.
LNG has rallied strongly in recent weeks, as buyers stockpile ahead of the peak summer demand season
Spot LNG for North Asia deliver has surged above £13/mmBtu, while JKM futures for August and September were also close to $13/mmBtu Monday.