ISLAMABAD: Pakistan has once again rejected a spot LNG bid from BP Singapore as rising international LNG prices, freight costs, and geopolitical risks continue to increase the cost of importing gas.
Pakistan LNG Limited received two bids for LNG delivery from September 8 to 12. BP Singapore offered the lowest price at $26.7128 per MMBtu, while PetroChina submitted a bid of $26.98 per MMBtu. Despite being the lowest offer, BP Singapore’s bid was rejected.
The decision follows Pakistan’s rejection earlier this week of another BP Singapore LNG offer priced at $26.969 per MMBtu for delivery from September 4 to 8.
Higher shipping and insurance costs, along with geopolitical risk premiums linked to tensions around the Strait of Hormuz, have pushed spot LNG prices significantly higher. These elevated costs are making additional LNG purchases increasingly expensive for Pakistan.
The government now faces a difficult balancing act between securing sufficient LNG supplies for the country’s energy needs and avoiding expensive cargoes that could further increase electricity generation costs.
