Oil major Shell and trading house Gunvor will supply Pakistan with 120 liquefied natural gas (LNG) cargoes between 2016 and 2020 after both companies submitted the lowest offers in two highly sought after tenders, trade sources said.

Pakistan State Oil company on November 9 launched two tenders seeking 60 cargoes each for delivery during the period.

Shell’s offered price to PSO at 13.83 per cent of the price of a barrel of crude oil for the 60-cargo LNG supply was the lowest among companies vying for the business, making it the likely winner, trade sources with knowledge of the matter said. The likely winner of Pakistan’s parallel 60-cargo supply tender is trading house Gunvor, which offered a delivered price of 13.37 per cent of a barrel of crude oil, traders said.

A global glut in gas supplies has caused spot LNG prices to plunge, prompting some countries to take advantage of the cheap supplies to become importers for the first time.