Jordan’s NEPCO issues spot LNG tender for two October cargoes

Jordan’s state-owned power generation company NEPCO has issued a tender requesting the delivery of two cargoes in October this year, tender documents showed on 12 August.

NEPCO is seeking two cargoes with a size no greater than 155,500 cubic metre (cbm) each for delivery on 6-7 October and 12-13 October respectively to the terminal at Aqaba. This equates to a full cargo that can be transported by a 160,000cbm LNG carrier. The energy value of the cargo is specified at 3.0-3.6TBtu per cargo, which allows for a relatively wide range of supply sources.

Bids are due on 18 August, with an award expected on 20 August. The validity window for bids is specified as 54 hours up to the award.

However, the tender documents have shown inconsistency in terms of volumes requested. While the tender’s overview specified a cargo size of 155,500cbm, on page 9 of the document NEPCO said the cargo should not exceed 151,500cbm with a quantity tolerance of plus or minus 2%.

Price requirements

In contrast to its previous tenders where NEPCO stated its preference for a Brent crude-linked price indexation, the company is currently seeking both cargoes on a fixed-price basis.

Interested participants can submit different price proposals, depending on whether they supply one or two cargoes to the terminal. NEPCO can accommodate a delivery from a vessel up to the Q-Flex category.

A performance guarantee equivalent to 10% of the cargo’s worth is required 20 days before the scheduled delivery date. This latest tender does not require a bank guarantee for participation.

NEPCO has previously held a tender for the delivery of two cargoes in September and awarded both to Switzerland-based energy trader Trafigura. The company’s first spot purchase was also sourced through a tender from Switzerland-based trader Vitol earlier this summer.

Ongoing short-term needs

NEPCO is concurrently holding a tender for short-term supply starting 2016. This tender closes on 2 September.

NEPCO’s tender for October cargoes competes with the outstanding requirements from Egypt’s state-owned gas buyer EGAS, Pakistan’s incumbent oil company Pakistan State Oil (PSO), India’s gas network operator GAIL, Indian refiner IOC and Mexican energy company CFE.

While demand across northeast Asia remains relatively weak, global spot prices are supported by competition for volumes elsewhere. The total unfilled global requirements for spot volumes currently stands at around 12 cargoes in October. roman.kazmin@icis.com