Pakistan has turned down an expensive LNG cargo bid and issued a fresh tender for supply, as a break in Qatari gas deliveries pushes the country closer to more power cuts. State-run Pakistan LNG Limited (PLL) rejected a $26.969 per MMBtu offer from BP Singapore for a cargo due between September 4 and 8, calling the price too high. PLL has now asked for new bids for a cargo between September 8 and 12, with offers due on September 4.
Why the Bid Was Rejected
BP Singapore was the only company that bid on PLL’s tender, and its offer technically qualified. The problem was the price. A senior PLL official said the international LNG price sits around $23.18 per MMBtu, while BP’s bid came in well above that, at $26.969. PLL judged the gap too wide to accept, and re-opened the tender instead.
The Tender, in Short
- Cargo size: 140,000 cubic metres of LNG, with a 5% tolerance
- Delivery point: Port Qasim, Karachi
- Original window: September 4 to 8
- Tender issued: August 30, with bids due September 1
- New window: September 8 to 12, with bids due September 4
PLL is the state-owned company that buys LNG on Pakistan’s behalf from international suppliers.
