Pakistan LNG Limited (PLL) has accepted BP Singapore's bid of $18.2345 per million British thermal units (mmBtu) to supply one liquefied natural gas (LNG) cargo for delivery on July 15–16, marking the third spot market procurement for the month. The state-owned company received three offers for the cargo window, which were opened on July 10. BP Singapore offered the lowest price at $18.2345/mmBtu, followed by PetroChina Intl at $18.5991/mmBtu and TotalEnergies Gas & Power Limited at $18.7200/mmBtu.
Spot Cargo Procurement Amid Qatar Supply Uncertainty
The tender, floated on Thursday, sought one LNG cargo from the spot market for the July 15–16 delivery window. The move comes as Pakistan faces uncertainty over Qatari LNG supplies under its long-term contract, exacerbated by the US-Israel-Iran conflict that has disrupted shipments through the Strait of Hormuz. Despite the strait's reopening, QatarEnergy has extended force majeure to some European and Asian buyers until August–September, making it unlikely for Pakistan to receive its full contracted volume.
Rising Electricity Demand Drives Spot Purchases
Pakistan has received nine LNG cargoes since the onset of the US-Israel war with Iran, driven by surging electricity demand amid high summer temperatures. Of these, five were supplied by QatarEnergy under the long-term deal, while four were procured from the spot market. The latest spot cargo will be the fifth such procurement, bringing the total number of LNG cargoes received since the conflict began to ten. This is the third spot cargo for July alone.
PLL Board Approves BP Singapore Offer
The PLL board has approved the BP Singapore offer of $18.2345/mmBtu, declaring the supplier as the lowest evaluated bidder for the July 15–16 window. Pakistan LNG Limited, owned by the Government of Pakistan, is mandated to procure LNG to meet the country's gas requirements. The spot market purchases are intended to bridge the gap left by reduced Qatari supplies and to address the heightened demand for power generation.
