BPCL wants 27 spot LNG cargoes

Vol 20, PW 6 (01 Dec 16) News in Brief

BPCL is in a hurry to make up for its late entry as an independent LNG importer.

In early November, BPCL issued a limited tender for 27 spot cargoes over three years from 2017 to 2019. "Starting 2017," says source.

"BPCL wants eight to nine cargoes every year." The tender closed on November 14 and follows an earlier tender which closed on November 4 to bring in a single cargo this month (December) and four cargoes beginning January 2017 with one cargo every quarter. The last tender was floated only amongst BPCL-approved LNG suppliers who have signed a MSPA (Master Sales Purchase Agreement) and a Transparency International-endorsed Integrity Pact.

On November 21, BPCL sourced its second spot cargo from Atlantic LNG through Shell-affiliate SITME and Swiss-based MET International AG at a "good price" of $6.19/mmbtu, say sources. On October 30, BPCL imported its first cargo as an independent importer through SITME from Equatorial Guinea for $6.40/mmbtu.

IndianOil is also landing a spot cargo at Dahej by the middle of this month (December) - its seventh cargo this year.