LAHORE: Pakistan has decided not to approve the lowest bids submitted for two spot LNG cargoes despite receiving competitive offers from international suppliers, amid expectations of securing cheaper LNG supplies from Qatar under long-term arrangements.
In this regard, Pakistan LNG Limited informed the two lowest bidders, BP Singapore and TotalEnergies Gas & Power Limited, that their offers had not been accepted.
According to officials familiar with the matter, the decision appears linked to positive indications from Qatar regarding the availability of two LNG cargoes that could potentially be routed through the Strait of Hormuz.
Sources said Qatar had earlier been reluctant to provide additional LNG cargoes to Pakistan due to concerns over regional security risks and possible disruptions to shipping routes through the Strait of Hormuz. However, recent geopolitical developments and Pakistan’s evolving diplomatic engagement in the region are believed to have improved confidence regarding LNG transportation.
The development comes as Pakistan recently returned to the global spot LNG market for the first time since December 2023 amid fears of supply disruptions caused by the Iran conflict and uncertainty surrounding Gulf shipping routes.
Last month, Pakistan accepted one LNG cargo at a relatively high price while rejecting several expensive spot offers in hopes that regional tensions would ease and long-term Qatari supplies would normalize.
Earlier this month, the country issued emergency tenders for LNG cargoes after fears of shortages intensified due to disruptions linked to the Strait of Hormuz crisis and reduced availability of Qatari supplies.
Energy markets across Asia have remained under pressure in recent months after tensions involving Iran disrupted shipping activity through the Strait of Hormuz, a key global energy corridor that handles nearly 20 percent of worldwide LNG and oil supplies.
Pakistan, which heavily depends on imported LNG and Gulf energy supplies, has been particularly vulnerable to the regional crisis. Authorities have been attempting to avoid costly spot market purchases due to pressure on foreign exchange reserves and the country’s rising import bill.
