Pakistan Rebuffs Another Expensive LNG Bid Amid Rising International Prices

Pakistan has once again rejected a spot liquefied natural gas (LNG) bid from BP Singapore due to high prices. This time, the offer was at $26.7128 per million British thermal units (MMBtu), which is still lower than PetroChina's offer of $26.98 per MMBtu.

The rejection follows a previous decision by Pakistan to turn down another bid from BP Singapore earlier this week for delivery from September 4 to 8. The current prices are being driven up by higher freight, insurance, and geopolitical risk premiums.

The government is facing a difficult choice between securing enough LNG supplies and avoiding costly cargoes that could increase electricity generation costs. The increasing expenses have made additional purchases of spot LNG more expensive for Pakistan.