Pakistan Rebuffs LNG Bid, Fears of Prolonged Blackouts Loom

Pakistan's power crisis deepened after the country refused to pay $26.969 per million British thermal units (MMBtu) for a liquefied natural gas (LNG) cargo, citing it as too high compared to the international price of $23.18 per MMBtu.

The single bid from BP was nearly three times the pre-war price that Pakistan paid in July, which was $20.70 per MMBtu.

The decision to reject the bid prompted a senior executive at Pakistan LNG Limited to confirm that a fresh tender would be issued seeking 140,000 cubic meters of natural gas, the equivalent amount needed by the country.

Pakistan's reliance on spot market purchases has driven power generation costs up by 38% in July from the previous year, further exacerbating the country's energy crisis.