Pakistan has decided not to purchase LNG spot cargoes for the time being after receiving positive indications about cheaper LNG supplies from Qatar under a long-term agreement.
According to sources in Pakistan LNG Limited, the country hopes to secure two LNG cargoes from Qatar at term contract rates.
Pakistan has rejected the lowest global bids submitted for LNG spot cargoes. Sources said Pakistan LNG Limited informed that the lowest bids from BP Singapore and Total Energies have been rejected.
PLL had received bids for spot cargoes, including offers of up to $16.98 per MMBTU.
Total Energy Gas & Power submitted the lower bid for the May 24–26 delivery window, while PLL also received a bid of $17.28 per MMBTU for May 12–14.
A total of six companies submitted bids for the spot cargoes. The PLL board will take the final decision on the spot cargo bids.
Qatar LNG expected at lower rates
Sources said Pakistan expects to receive two LNG cargoes from Qatar at “term contract” rates. The LNG from Qatar may be obtained at a rate of 13.37% of Brent crude oil.
Officials believe LNG under the long-term contract could be cheaper than cargoes available in the spot market.
Positive indications have been received from Qatar about the availability of LNG cargoes. The potential Qatari cargoes are expected to be delivered to Pakistan through the Strait of Hormuz.
Govt seeks lower energy costs
The government is actively working to reduce energy costs through cheaper imported gas. Officials are expected to prefer long-term LNG contracts over the spot market to manage prices more effectively.
Energy experts say the move could help reduce energy prices and support economic activity across the country.
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