Pakistan has approved a higher-priced LNG cargo while rejecting cheaper offers in the latest procurement round as it is betting big on supply routes through the Strait of Hormuz to open in the first half of May, sources told ProPakistani.
State-run Pakistan LNG Limited (PLL) cleared a revised bid of $18.4 per million British thermal units (mmBtu) from TotalEnergies for delivery between April 27 and 30.
Vitol Bahrain offered $18.54 per mmBtu for early May delivery, while OQ Trading submitted the lowest bid at $17.997 per mmBtu for a later delivery period. Both were not accepted despite OQ Trading offering the cheapest cargo. Timing was an issue with power shortages looming due to rising demand.
PLL rejected all alternative offers for multiple delivery windows in early May. The latest procurement strategy factored in expectations that shipping conditions in the region could improve, particularly with the anticipated easing of disruptions in the Strait of Hormuz, a critical global energy route.
Earlier, PLL had issued urgent tenders for three LNG cargoes to address rising electricity demand and fuel shortages. The move came as Pakistan faced a power shortfall of more than 4,500 megawatts, resulting in extended load-shedding in several regions.
The tender process was conducted on an urgent basis, with bids received and opened on April 24 to meet immediate supply needs for power generation.
With additional taxes, regasification charges, and system costs, the delivered price of regasified LNG is expected to reach nearly $23 per mmBtu, significantly higher than earlier projections.
RLNG prices recently increased by 19–22 percent due to higher terminal charges and reduced import volumes. The latest pricing structure was based on a smaller number of cargoes compared to previous months.
Rising summer demand, combined with limited flexibility in supply chains, continues to strain the power sector. While solar generation has reduced daytime grid pressure, demand spikes after sunset continue.
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