Pakistan has again rejected a spot LNG bid from BP Singapore, this time at $26.7128 per MMBtu, as international LNG prices and shipping costs continue to rise amid risks around the Strait of Hormuz.
The bid was the lowest of two offers received by Pakistan LNG Limited for delivery from September 8 to 12. PetroChina offered LNG at $26.98 per MMBtu.
The latest rejection follows Pakistan’s decision earlier this week to turn down another BP Singapore offer of $26.969 per MMBtu for delivery from September 4 to 8, with authorities again considering the price too high.
Higher freight, insurance and geopolitical risk premiums are pushing up spot LNG prices, making additional purchases increasingly expensive for Pakistan.
The government now faces a difficult choice between securing enough LNG supplies and avoiding costly cargoes that could increase electricity generation costs.
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