ISLAMABAD: Pakistan has once again rejected a spot LNG cargo offered by BP Singapore at $26.7128 per MMBtu, as soaring international prices and heightened shipping risks around the Strait of Hormuz make spot procurement increasingly expensive.
The offer, submitted for delivery from September 8–12, was the lowest of two bids received by Pakistan LNG Limited (PLL). PetroChina quoted $26.98 per MMBtu.
The PLL Board had earlier rejected another BP Singapore bid of $26.969 per MMBtu for the September 4–8 delivery window, citing the high cost.
“Obviously, the Friday bid of BP Singapore is also too high; therefore, it has been decided to reject the bid,” a senior Petroleum Division official said.
The latest rejection comes amid a sharp increase in LNG prices and shipping costs, with traders factoring higher freight, insurance and geopolitical risk premiums into their offers due to growing uncertainty around the Strait of Hormuz.
Pakistan now faces a difficult balancing act between securing additional LNG supplies and avoiding costly spot cargoes that could further increase power generation costs and pressure the energy sector.
Story by Khalid Mustafa
