Pakistan LNG Limited reissues LNG tender after rejecting two high‑price bids
PLL has cancelled two bids from BP Singapore for LNG cargoes priced above its ceiling and re‑opened the tender for delivery on 12‑16 September, highlighting ongoing RLNG shortages.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Power sector faces continued fuel shortage, so avoid buying related stocks for now.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- PowerNegatively affected
Companies
Mentions in This Briefing
Sectors: Power — Negative · Do not buy. PSX tickers: OGDC, PPL, MARI, PSO, SNGP, ATRL. Power sector faces continued fuel shortage, so avoid buying related stocks for now.
Full Story
Open on Profit## Background
Pakistan LNG Limited (PLL) is responsible for securing LNG cargoes to alleviate the country’s acute RLNG shortage, which has been curbing electricity generation.
## Tender History
- First tender (Sept 4‑8): BP Singapore was the sole respondent, offering $26.90 per MMBtu. PLL deemed the price unaffordable and rejected the bid. - Second tender (Sept 8‑12): BP Singapore submitted a revised offer of $26.71 per MMBtu. Despite the slight reduction, PLL again found the price excessive and declined the cargo.
## Current Action
PLL has now re‑issued the tender for a new cargo window covering 12‑16 September, inviting fresh proposals that meet its cost parameters.
## Market Implications
The inability to secure LNG at acceptable rates prolongs the RLNG deficit, putting further pressure on the power sector’s fuel supply and potentially affecting generation costs and grid stability.
## Outlook
Stakeholders will be watching for new bids that align with PLL’s price ceiling. A successful tender could ease the power shortage, while continued rejections may sustain upward pressure on electricity tariffs.