Pakistan accepts BP Singapore’s spot LNG cargo at $19.1337 per mmbtu

LNG
LNG

KARACHI: Pakistan has accepted a spot liquefied natural gas cargo from BP Singapore after the company submitted the lowest bid of $19.1337 per million British thermal units, a Ministry of Energy official confirmed late Thursday.

The 140,000-cubic-meter cargo is scheduled for delivery June 6-7. BP Singapore edged out three rival offers, including a bid from Vitol Bahrain that came in at $19.1350 per mmbtu, a difference of less than two-thousandths of a dollar.

TotalEnergies Gas & Power Limited bid $19.8400 per mmbtu, while SCOAR Trading offered the highest price at $19.9422 per mmbtu.

The narrow margin between the top two bids reflects competitive pressure in a tight regional spot market as ongoing Middle East tensions disrupt regular supply flows.

Only two LNG vessels reached Pakistan in March amid the disruptions, according to the official. The country secured three cargoes from QatarEnergy in May under long-term agreements after a period of reduced arrivals, but spot purchases have become necessary to fill remaining gaps.

Pakistan typically imports nine to 10 LNG cargoes each month from Qatar under two long-term contracts. One contract is priced at a 13.37% slope of Brent crude and the other at a 10.2% slope, making Qatar the country’s dominant LNG supplier.

The latest acceptance marks Pakistan’s third spot LNG tender in recent months and follows its first spot purchase in nearly three years, made in April, underscoring a shift in procurement strategy as authorities work to maintain fuel availability for power generation and industry.