Pakistan LNG Issues New Tender After Rejecting Expensive BP Singapore Bid
Pakistan LNG Limited has cancelled a high‑priced offer from BP Singapore and re‑opened bidding for a 140,000 m³ LNG cargo needed in early September, as the country seeks cheaper fuel amid power shortages and regional shipping risks.
Share
Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Power and Oil & Gas sectors benefit from a potentially cheaper LNG purchase, creating a Buy bias on related tickers.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- PowerPositively affected
- Oil & GasPositively affected
Companies
Companies Mentioned
- PLL· Positively affected · Buy bias
Mentions in This Briefing
Sectors: Power, Oil & Gas — Positive · Buy bias. PSX tickers: PLL. Power and Oil & Gas sectors benefit from a potentially cheaper LNG purchase, creating a Buy bias on related tickers.
Full Story
Open on ProPakistani## New Tender Launched
Pakistan LNG Limited (PLL) announced a fresh tender for an LNG cargo of roughly 140,000 cubic metres after turning down the sole bid received from BP Singapore. The rejected offer priced the cargo at $26.969 per MMBtu, which officials deemed excessive.
## Bid Details and Timeline
The new tender invites fresh proposals, with bids to be opened on Friday. The cargo is required for delivery between 8 and 12 September, according to senior officials in the Petroleum Division.
## Reason for Rejection
BP Singapore’s quote was compared with the prevailing international LNG price of about $23.18 per MMBtu, making the bid significantly above market levels. PLL therefore decided to seek a more competitive price.
## Context of Rising Demand
Pakistan is under pressure to secure additional LNG supplies as prolonged power outages affect several regions. The country entered the spot market after a scheduled cargo from Qatar for 25‑26 August failed to arrive.
## Geopolitical Risks
Tensions in the Strait of Hormuz, linked to the US‑Iran conflict, have heightened uncertainty around LNG shipping routes, availability, and pricing from Gulf suppliers.
## Outlook
The fresh tender aims to obtain a cargo at a price closer to the current global benchmark, which could help stabilise power generation costs and reduce the fiscal impact of imported fuel.