ISLAMABAD: Pakistan on Thursday rejected the two lowest evaluated LNG bids from BP Singapore and TotalEnergies, priced at $17.28 and $16.98 per million British thermal units (mmBtu), respectively, for delivery next week and in the last week of the current month.
State-run Pakistan LNG Limited (PLL) received a total of seven bids — three cargoes for May 12-14 and four for May 24-26 — against urgent tenders floated a day earlier.
For the first cargo, PetroChina bid $17.69 per mmBtu, BP Singapore $17.28 and Vitol Bahrain $17.84.
For the second cargo (May 24-26), TotalEnergies bid $16.98 per mmBtu, OQ Trading $18.58, SOCAR Trading $17.21 and PetroChina International $17.49.
PLL on Wednesday floated urgent tenders on a 36-hour notice for the import of two LNG cargoes for delivery between May 12-14 and May 24-26 amid rising temperatures and a power shortfall.
The tender was floated following expectations among authorities that the Gulf crisis would ease and the Strait of Hormuz would reopen.
PLL had rejected two bids for these delivery dates last month, while accepting one bid at $18.4 per mmBtu after securing relatively cheaper offers.
Qatar, Pakistan’s long-term LNG supplier, had been reluctant to send LNG-loaded cargoes stranded in the Gulf due to the closure of the strait. Qatar’s three LNG cargoes meant for Pakistan had earlier returned from the waterway due to security reasons.
In April, the Oil and Gas Regulatory Authority (Ogra) notified a massive 19-22 per cent increase in the price of regasified liquefied natural gas (RLNG) to $12.50-$14 per mmBtu for sales at the distribution stage by the two Sui gas companies.
The increase was mainly due to higher terminal charges amid lower import volumes and a minor rise in import prices, data from the authority showed.
The basket RLNG price was based on only two cargoes in March, compared to eight cargoes each in February and March, due to a force majeure declared by Qatar.
Both cargoes were imported under two LNG contracts between Pakistan State Oil and QatarGas at an average price of about $7.68 per mmBtu (DES), compared to $7.45 per mmBtu last month, but still significantly lower than $8.9 per mmBtu in March last year.
PLL, one of the public sector entities responsible for LNG imports, did not import any cargo last month. It had, in fact, imported one cargo a few months earlier after a gap of almost a year at about $7.65 per mmBtu through its old contract with a private entity.
The PLL, established almost a decade ago for LNG imports, could not import energy over the past year despite its executives and board of directors enjoying hefty remuneration and associated perks and privileges. It had last floated and LNG tender in December 2023 for delivery in January 2024 but later cancelled the tender.
Facing criticism over loadshedding even before the beginning of summer, the Power Division had already placed an order with the Petroleum Division last week to arrange around 400 million mmcfd of LNG for power generation, amid hopes of the opening of international supply routes.
LNG imports had stopped in March after the closure of the Strait of Hormuz following US-Israel attacks on Iran, which, in retaliation, targeted fuel installations in neighbouring countries, including Qatar, Saudi Arabia, the UAE and Kuwait, among others. Subsequently, Qatar declared force majeure early last month on all its global LNG contracts, including those with Pakistan.
