ISLAMABAD, MAY 8: Pakistan has rejected bids for spot liquefied natural gas (LNG) cargoes for May as the country faces growing uncertainty over energy shipments, sources in the Ministry of Energy said on Friday.
The bids were invited by Pakistan LNG Limited (PLNG) for the purchase of two spot LNG cargoes scheduled for delivery between May 12-14 and May 24-26.
According to sources, seven bids were received for the two cargoes. The lowest bid for the May 12-14 delivery window stood at $17.28 per mmbtu.
For the May 24-26 delivery window, the lowest offer came in at $16.98 per mmbtu, the sources said.
However, both the lowest bids for spot LNG supply were rejected by the Pakistan LNG Board, according to Ministry of Energy sources.
The sources further said that earlier bids for the procurement of two spot LNG cargoes for May had also been rejected.
The country rejected the offers as there are indications that it may be able to secure LNG supplies from Qatar under long-term contractual arrangements at significantly lower prices, according to a report by The News.
Citing officials familiar with the development, The News reported that the decision appeared linked to positive signals from Qatar regarding the availability of two LNG cargoes that could be routed through the Strait of Hormuz.
The sources said Qatar had earlier shown reluctance in supplying additional LNG cargoes to Pakistan due to fears surrounding regional security risks and potential disruption to shipping routes in the Strait of Hormuz, according to the report.
However, recent geopolitical developments and Pakistan’s evolving diplomatic role in the region are believed to have improved confidence regarding LNG transportation, it said.
Pakistan last received an LNG cargo on April 30, providing a much-needed boost to the country’s energy sector.
LNG carrier Seapeak Magellan docked at the Pakistan GasPort terminal on April 30 and started feeding re-gasified LNG (RLNG) into the national network, according to The News.
The cargo — arranged by TotalEnergies at a price of $18.40 per mmbtu — marked the first LNG shipment to reach the country since a US-origin cargo arrived weeks earlier.
