PLL rejects September emergency LNG cargo bid over high price

Pakistan LNG Limited (PLL) has rejected a bid for an emergency spot LNG cargo for September after the sole technically qualified bidder offered the gas at a price considered too high.

 

According to PLL's bid evaluation report, BP Singapore was the only company to submit an offer for the September 4-8 delivery window. The bidder technically qualified but quoted $26.969 per million British thermal units (MMBtu), prompting PLL to reject the offer.

 

The state-owned LNG importer had sought a spot cargo of 140,000 cubic metres for delivery to Port Qasim, Karachi, between September 4 and 8 to help cover a shortfall in contracted LNG supplies.

 

PLL has now re-invited international LNG suppliers to bid for another spot cargo for delivery between September 8 and 12, 2026. The tender is based on a Delivered Ex-Ship (DES) arrangement at Port Qasim, with bids scheduled to open on September 4.

 

The latest procurement effort comes after QatarEnergy, Pakistan's long-term LNG supplier, declared force majeure following attacks on two of its key facilities in March. The disruption halted production and created a supply gap, forcing Pakistan to seek additional LNG cargoes from the international spot market.

 

PLL, a government-owned company responsible for procuring LNG from international markets and supplying it to domestic users, has increasingly relied on spot purchases to manage the shortfall.

 

The rejection of the latest offer highlights the challenge of securing emergency LNG supplies at affordable prices, particularly as Pakistan seeks to balance immediate energy requirements with the rising cost of spot-market cargoes.