Pakistan rejects LNG bids from BP Singapore, TotalEnergies over pricing

ISLAMABAD: Pakistan on Thursday rejected two bids from BP Singapore and TotalEnergies for the import of liquefied natural gas (LNG), priced at $17.28 and $16.98 per million British thermal unit (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........

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