Pakistan Rebuffs Expensive LNG Shipment, Blackouts Loom

Pakistan is facing an escalating electricity crisis after rejecting a shipment of liquefied natural gas (LNG) due to its high price. The state-owned Pakistan LNG Ltd. called off an emergency tender for a shipment with delivery by September 8, citing the sole offer from BP Plc at $27 per million British thermal units, nearly three times pre-war spot levels.

The government deemed the offer too expensive and may reissue the bidding process, according to traders. Without additional supply, the country may need to continue rolling blackouts in the evening when solar generation fades and fossil-fuel plants are needed to compensate for the shortfall.