Pakistan has rejected bids for spot liquefied natural gas (LNG) shipments for May amid rising uncertainty surrounding regional energy supply routes.
Pakistan LNG Limited (PLL) had sought bids for two spot LNG cargoes, with deliveries planned for May 12-14 and May 24-26.
According to the media reports citing Ministry of Energy officials, seven bids were submitted for the tenders. The lowest quotation for the first delivery window was priced at $17.28 per mmbtu, while the cheapest offer for the second shipment stood at $16.98 per mmbtu.
Despite receiving multiple bids, the Pakistan LNG Board decided not to accept any of the offers.
According to officials, the move was influenced by expectations that Pakistan could obtain LNG from Qatar under existing long-term agreements at considerably lower rates.
The decision followed encouraging signals from Qatar regarding the possible supply of two LNG cargoes through the Strait of Hormuz.
Qatar had earlier hesitated to provide additional cargoes because of concerns over regional tensions and the security of shipping lanes passing through the Strait of Hormuz.
However, recent diplomatic developments and Pakistan’s growing regional engagement are believed to have eased concerns over LNG transportation.
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