Pakistan has decided not to accept the lowest bids submitted for two spot Liquefied Natural Gas (LNG) cargoes despite receiving competitive offers from international suppliers, as authorities expect cheaper LNG supplies from Qatar under long-term agreements.
According to reports, Pakistan LNG Limited (PLL) informed BP Singapore and TotalEnergies Gas & Power Limited that their bids for the cargoes had not been accepted. Officials familiar with the matter said the government is optimistic that Qatar may provide additional LNG shipments at lower contract-based prices in the coming weeks.
Sources indicated that Qatar had earlier shown hesitation in supplying extra LNG cargoes because of security concerns surrounding the Strait of Hormuz and rising tensions in the Middle East. However, recent diplomatic developments and improving regional conditions are believed to have increased confidence regarding safe transportation routes.
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Pakistan recently returned to the global spot LNG market for the first time since late 2023 due to fears of supply shortages linked to regional instability and disruptions in Gulf shipping routes. Earlier tenders saw Pakistan accepting one LNG cargo at relatively expensive rates while rejecting several higher-priced offers in hopes that market conditions would improve.
Energy analysts say Pakistan’s latest move reflects an attempt to avoid costly spot purchases that could place additional pressure on the country’s foreign exchange reserves and import bill. However, experts also warn that relying on future Qatari supplies carries risks if regional tensions escalate again or shipping disruptions continue in the Strait of Hormuz.
The Strait of Hormuz remains one of the world’s most critical energy corridors, handling a significant share of global LNG and oil shipments. Any disruption in the route could directly impact Pakistan’s energy security and fuel supply chain.
