Pakistan on Thursday decided not to accept the lowest bids for two spot LNG cargoes, despite receiving competitive offers from international suppliers, amid indications that the country may secure the shipments from Qatar under long-term contractual arrangements at lower prices.
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 to be linked to positive signals from Qatar over the possible availability of two LNG cargoes that could be supplied to Pakistan through the Strait of Hormuz.
Sources said Qatar had earlier been reluctant to provide additional LNG cargoes because of concerns over regional security risks and the possibility of disruption to shipping routes through the strategic waterway.
However, recent geopolitical developments and Pakistan’s evolving diplomatic role in the region are believed to have improved confidence over the safe transportation of LNG cargoes, prompting Islamabad to hold back from finalizing the spot purchases.
If the Qatari supply materializes, Pakistan could secure the cargoes at significantly lower prices than those offered in the spot market, providing some relief in its import costs and energy bill.
