Pakistan has decided not to accept the lowest global bids received for two spot cargoes of liquefied natural gas (LNG), as the government hopes to get LNG supplies from Qatar at a lower price.
According to sources, Pakistan LNG Limited (PLL) rejected the two lowest bids after reviewing the offers submitted by international suppliers. The bids were submitted by BP Singapore and Total Energies Gas and Power Limited.
Officials said that Pakistan has received positive indications from Qatar, under which the country may get two LNG cargoes under long-term contracts at a relatively cheaper price. According to reports, the price could be equivalent to about 13.37 percent of the price of Brent crude oil, which is considered more attractive than the current global spot market.
Energy officials say that if this arrangement with Qatar is successful, it can help Pakistan reduce the cost of imported fuel and reduce foreign exchange pressure. In addition, the country is also likely to get relief to meet its increasing energy needs in the summer.
Sources further said that possible Qatari cargoes can be delivered to Pakistan via the Strait of Hormuz, while this development is being described as a significant change in the government’s energy procurement strategy.
According to experts, despite the uncertainty in the global energy market, Pakistan is trying to limit gas import costs through low prices and long-term supplies.