Pakistan Reissues LNG Tender Amid Power Outage Crisis

Pakistan LNG Limited has reissued a tender for an LNG cargo after rejecting a bid from BP Singapore due to its high price. The rejected bid was $26.969 per MMBtu, which is significantly more expensive than the prevailing international LNG price of $23.18 per MMBtu. This rejection comes as Pakistan faces increasing pressure to secure additional LNG supplies amid prolonged power outages reported in several parts of the country.

The new tender for an LNG cargo of around 140,000 cubic meters has bids due to be opened on Friday. The required delivery window is between September 8 and 12. A senior official from the Petroleum Division stated that the rejection of BP Singapore's bid was based on its significantly higher price compared to the international market.

Pakistan entered the international spot market after an LNG cargo from Qatar scheduled for August 25 and 26 did not materialize. Rising tensions around the Strait of Hormuz amid the US Iran conflict have increased uncertainty over LNG availability, shipping, and prices from the Gulf.