FLASHNEWS:

AKD Securities Limited – AKD Daily (December 16, 2022)

Karachi, December 16, 2022 (PPI-OT): Pakistan OMC: LNG spikes as winter settles

Europe’s race to procure RLNG has been unparalleled in recent times, and has subsequently led to a much tighter global market for the liquid gas molecule.

In this backdrop, Pakistan LNG Limited, one of the two RLNG importers in the country, has been able to procure only one cargo per month since July’22.

Meanwhile, six cargoes from PSO’s long-term G2G arrangements with Qatar Gas continue to power through at Brent slope 13.37%, while 3 additional cargoes at 10.20% slope resulting in average DES to stand at $11.4/mmbtu for 2QFY23 (down 15%QoQ).

Prices of diesel and petrol have fallen sharply in international markets to CYTD lows, down 35% and 46% respectively from peaks reached in June’22 to stand at $US112.8/82.73 per bbl.

Come CY23, there is expected to be some respite majorly due to production increases in the western front (ExxonMobil’s new Beaumont refinery to kick start in 1HCY23), and with other facilities also coming back from seasonal maintenances fully during the same period.