Pakistan Turns Down High-Priced LNG Bids, Pursues Discounted Qatari Supply

Pakistan LNG Limited (PLL) has rejected two spot liquefied natural gas (LNG) cargo offers after international suppliers quoted prices far above expectations, according to company sources. The state-owned buyer declined the bids for delivery windows in December 2026 and January 2027, with the highest offer reaching $31 per million British thermal units (MMBtu).

For the December delivery window, TotalEnergies Gas & Power Limited submitted the lowest evaluated bid at $27.30 per MMBtu, while QatarEnergy Trading LLC quoted $31 per MMBtu. PLL turned down both offers. For January 2027, TotalEnergies again submitted the lowest evaluated bid at $27.10 per MMBtu, a cargo valued at roughly Rs. 24.28 billion, which was also rejected.

PLL had originally issued the tender on November 4, seeking two spot cargoes of 140,000 cubic meters each for delivery at Port Qasim. The submission deadline was extended from November 6 to November 10 at the request of potential international suppliers. The high prices reflect volatile conditions in the global spot market, which is adding pressure on Pakistan's efforts to secure additional supply before winter.

In parallel, Pakistan is stepping up efforts to obtain discounted LNG from Qatar through its existing long-term contracts as winter demand rises and disruptions in the Strait of Hormuz threaten international energy supply chains. Federal Petroleum Minister Ali Pervaiz Malik arrived in Qatar on Tuesday with a high-level delegation that includes the Petroleum Secretary and other senior officials.

The minister met Qatar's Minister of State for Energy Affairs, Saad Sherida Al-Kaabi, to discuss maximizing LNG deliveries under Pakistan's two existing long-term supply agreements, according to Petroleum Division sources and updates shared on the minister's official X account. The talks underline Pakistan's focus on locking in affordable energy supplies as global market volatility complicates spot purchasing.