State-owned Pakistan LNG Limited (PLL) has approved a revised bid of $18.4 per million British thermal units (mmBtu) from TotalEnergies for the urgent supply of liquefied natural gas (LNG) cargoes scheduled between April 27 and April 30. The decision came after rejecting all other competing offers in a tightly contested tender process aimed at addressing immediate energy shortages in the country.
Initially, TotalEnergies submitted a bid of $18.88 per mmBtu but later revised its price downward to $18.4 per mmBtu following negotiations with the authorities. PLL, after reviewing market conditions and internal consultations, decided to accept the revised offer while rejecting all remaining bids for the first half of May, largely due to expectations of improved supply conditions and the possible reopening of the Strait of Hormuz.
The urgent tender, floated on Thursday, attracted four bids ranging between $17.997 and $18.88 per mmBtu for multiple delivery windows spanning April 27 to May 14. Three different suppliers participated, and several offers were identified as the lowest for their respective delivery periods. Vitol Bahrain offered $18.54 per mmBtu for the May 1–7 window, while OQ Trading submitted the lowest bid of $17.997 per mmBtu for May 8–14. However, both of these were ultimately rejected.
Authorities initiated the procurement process in response to rising electricity demand and worsening power shortages, which have exceeded 4,500 megawatts during peak hours, resulting in six to seven hours of load shedding in several regions. The need for urgent LNG imports was further intensified by extreme temperatures and constraints in the national energy supply chain.
The situation has been complicated by disruptions in global LNG logistics, including Qatar’s reluctance to dispatch shipments stranded in the Gulf due to security concerns and previous closures of the Strait of Hormuz. Earlier, three Qatari LNG cargoes destined for Pakistan were reportedly forced to return due to such disruptions.
With domestic charges and taxes included, the effective cost of regasified LNG is expected to reach around $23 per mmBtu, nearly double the March import levels. Regulatory adjustments and fluctuating global prices have further contributed to rising costs, with earlier imports priced significantly lower under long-term contracts.
