The Dubai Supply Authority is reportedly close to awarding a private tender for the supply of 4 to 6 LNG cargoes each in 2016 and 2017.
Sources revealed to Reuters that the tender is in the final stages with two companies remaining in the bidding.
Traders taking part in the bilateral talks revealed that offers were priced well bellow 12 percent of the price of Brent crude oil possibly ending at a $5 per million British thermal units for a two-year deal.
15 companies submitted their offers to DUSUP that has declined all but two coming from oil majors with an award anticipated for this weekend.
Commenting on the low offer prices, one of the sources said that the tender followed closely after the one issued by Jordan’s National Electric Power Company.
As it was reported earlier, Jordan’s NEPCO selected Shell to supply half of the LNG cargoes sought in a 78-cargo tender issued in July.
That tender attracted more than 16 bidders that could have turned to DUSUP’s tender with aggressive offers, the source explained.
LNG World News Staff; Image: Excelerate Energy