ISLAMABAD: Pakistan on Thursday decided not to accept the lowest global bids received for two spot cargoes of LNG, as officials expect that gas cargoes may be available from Qatar at a relatively lower price under long-term contracts.
According to energy sector sources, Pakistan LNG Limited (PLL) has informed the companies concerned about the rejection of the lowest bids submitted by BP Singapore and Total Energies Gas and Power Limited.
Officials said that the decision was based on initial indications from Qatar that it may supply two LNG cargoes to Pakistan. It is reported that these supplies may be available at a rate equivalent to about 13.37 percent of the price of Brent crude oil under existing long-term contracts.
According to sources, the potential Qatari cargoes will be delivered to Pakistan via the Strait of Hormuz, while their price may be lower than the current bids offered in the global spot market.
Energy experts say that Pakistan is currently trying to reduce the financial pressure arising from expensive imported energy. In such a situation, if LNG becomes available from Qatar at discounted rates, it can help reduce the import bill and stabilise gas supply.
According to government circles, the final decision will depend on the ongoing contacts with Qatar and the availability of cargoes; however, the current progress is being considered an important step in the energy procurement policy.
