Pakistan receives four LNG spot market bids as Middle East tensions disrupt supply
BP Singapore submitted the lowest offer at $19.13/mmbtu as Pakistan issues its third spot LNG tender amid Middle East-linked supply disruptions.
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
Pakistan has received four bids for a spot liquefied natural gas cargo as the country seeks to plug supply gaps caused by disruptions linked to the Middle East conflict. State-owned Pakistan LNG Limited (PLL) invited offers on Thursday for a 140,000-cubic-metre cargo to be delivered between June 6 and 7, marking the country's third spot market tender in recent weeks.
Why is Pakistan buying LNG on the spot market?
Disruptions to Middle East shipping routes have reduced the flow of contracted LNG from Qatar, pushing Pakistan back to the costlier spot market. Pakistan typically receives nine to ten cargoes monthly from QatarEnergy under long-term deals, but only two arrived in March. The government is using spot purchases to cover the shortfall while contracted volumes remain constrained.
What bids did Pakistan receive in the latest LNG tender?
BP Singapore submitted the lowest offer at $19.1337 per million British thermal units (mmbtu), narrowly undercutting Vitol Bahrain's bid of $19.1350/mmbtu. TotalEnergies Gas & Power Limited offered $19.8400/mmbtu, while SCOAR Trading came in highest at $19.9422/mmbtu. Spot prices hovering around $19/mmbtu reflect the impact of supply uncertainty and shipping disruptions in the region.
How have Middle East tensions affected Pakistan's LNG imports?
Industry sources said Pakistan recently received three LNG cargoes from QatarEnergy under long-term contracts after nearly two months of reduced arrivals. Qatar is Pakistan's largest LNG supplier, and the drop in deliveries earlier this year has forced authorities to supplement contracted volumes through the spot market. Pakistan also imported its first spot LNG cargo in nearly three years earlier this year, signaling a broader shift in procurement strategy.
How much has Pakistan's LNG import bill changed this year?
Pakistan's LNG import bill has fallen sharply in the current fiscal year, driven by lower volumes and weaker demand. Data from the Pakistan Bureau of Statistics shows LNG imports totaled $1.884 billion in the nine months to April 30, compared with $2.917 billion over the same period a year earlier. The participation of major global trading firms in the latest tender points to continued supplier interest despite the elevated geopolitical risks.
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