Pakistan LNG Seeks New Cargo Amid Power Outage Pressures

Pakistan LNG Limited has issued a new tender to purchase an liquefied natural gas (LNG) cargo after rejecting a bid from BP Singapore that officials deemed too expensive. The rejected bid was for $26.969 per million British thermal units (MMBtu), which is significantly higher than the prevailing international price of around $23.18 per MMBtu.

The new tender is for an LNG cargo of approximately 140,000 cubic meters and bids are due to be opened on Friday. The delivery window for this cargo is between September 8 and 12. This development comes as Pakistan faces increasing pressure to secure additional LNG supplies amid prolonged power outages in several parts of the country.

Pakistan entered the international spot market after an LNG cargo from Qatar scheduled for August 25 and 26 did not materialize due to rising tensions around the Strait of Hormuz amid the US-Iran conflict. This uncertainty has increased concerns over LNG availability, shipping, and prices from the Gulf region.