Pakistan accepts BP Singapore's lowest bid for spot LNG cargo amid Middle East supply disruptions

Pakistan has accepted a spot liquefied natural gas cargo from BP Singapore after the company submitted the lowest bid of $19.1337 per million British thermal units, a Ministry of Energy official confirmed late Thursday.

The purchase is Pakistan's third spot LNG tender in recent months as ongoing Middle East tensions disrupt regional supply flows. BP Singapore beat out three rival bids for a 140,000-cubic-meter cargo scheduled for delivery June 6-7.

Why did Pakistan accept the BP Singapore LNG bid?

Pakistan accepted BP Singapore's bid because it was the lowest among four competing offers for a spot LNG cargo scheduled for delivery on June 6-7.

The $19.1337 per mmbtu price narrowly undercut Vitol Bahrain's offer of $19.1350 per mmbtu. Authorities needed to secure additional fuel supplies as Middle East disruptions continue to affect regular energy flows into the country.

What prices did the other LNG bidders submit?

BP Singapore's winning offer edged out Vitol Bahrain by less than two-thousandths of a dollar per mmbtu. TotalEnergies Gas & Power Limited bid $19.8400 per mmbtu, while SCOAR Trading came in highest at $19.9422 per mmbtu.

The narrow margin between the top two bids reflects competitive pressure in a tight regional spot market.

How has the Middle East conflict affected Pakistan's LNG supply?

The conflict has disrupted regular LNG deliveries to Pakistan over several months. Only two LNG vessels reached the country in March as regional developments affected supply routes.

Pakistan secured three cargoes from QatarEnergy in May under long-term agreements after a period of reduced arrivals, but spot purchases have become necessary to fill remaining gaps.

How does Pakistan normally source its LNG?

Pakistan typically imports nine to 10 LNG cargoes each month from Qatar under two long-term contracts. One contract is priced at a 13.37% slope of Brent crude and the other at a 10.2% slope, making Qatar the country's dominant LNG supplier.

Spot purchases supplement those volumes when long-term deliveries fall short or supply routes face disruption.

The latest acceptance follows Pakistan's first spot LNG purchase in nearly three years, made in April, underscoring a shift in procurement strategy as authorities work to maintain fuel availability for power generation and industry.