Pakistan rejects lowest LNG bids for May deliveries despite urgent tenders 

State-run Pakistan LNG Limited (PLL) on Thursday rejected the two lowest liquefied natural gas (LNG) bids submitted by BP Singapore and TotalEnergies at $17.28 and $16.98 per million British thermal units (mmBtu), respectively, against urgent tenders floated for May deliveries amid rising temperatures and increasing power demand, according to reports.

PLL had floated emergency tenders on Wednesday with a 36-hour notice period for two LNG cargoes scheduled for delivery between May 12-14 and May 24-26.

The company received a total of seven bids for the two delivery windows.

For the May 12-14 cargo, BP Singapore offered $17.28 per mmBtu, PetroChina bid $17.69 and Vitol Bahrain submitted an offer of $17.84.

For the May 24-26 delivery window, TotalEnergies offered $16.98 per mmBtu, SOCAR Trading bid $17.21, PetroChina International submitted $17.49 and OQ Trading offered $18.58.

Officials said the tenders were floated after expectations emerged that tensions in the Gulf region could ease and shipping activity through the Strait of Hormuz could resume.

PLL had also rejected two LNG bids for the same delivery periods last month, while accepting one cargo at $18.4 per mmBtu after securing comparatively lower offers.

Pakistan’s LNG imports had been disrupted after closure of the Strait of Hormuz following military escalation involving the United States, Israel and Iran.

Qatar, Pakistan’s long-term LNG supplier, had reportedly avoided sending LNG cargoes through the Gulf due to security concerns, while three LNG cargoes meant for Pakistan earlier returned from the waterway.

Both March cargoes were imported under long-term agreements between Pakistan State Oil and QatarGas at an average delivered price of about $7.68 per mmBtu.

PLL did not import any LNG cargo during the last month. The company had earlier imported one cargo after almost a year through an older contract with a private supplier at around $7.65 per mmBtu.

PLL last floated an LNG tender in December 2023 for January 2024 delivery but later cancelled the process.