Home›Commodities›Energy›Pakistan likely to extend rolling blackouts after LNG…

Pakistan likely to extend rolling blackouts after LNG price rejection

Pakistan rejected a BP LNG offer at $27 per mmBtu, prompting a fresh tender for about 140,000 cu m as power generation costs rose 38% in July year over year.

Reported · Written up by our desk · Energy

Pakistan may have to extend rolling blackouts after it refused to pay a high price for a liquefied natural gas cargo, according to OilPrice. The latest emergency tender drew only one offer, from BP, priced at $27 per million British thermal units.

OilPrice reports that Bloomberg, citing unnamed trading sources, said the international LNG market price was about $23.18 per mmBtu while Pakistan’s bid came in around $26.969 per mmBtu. A senior Pakistan LNG Limited executive, as quoted by Pakistani media, said the price was considered too high, leading to a fresh tender.

The new tender is expected to be issued on the day of the report, seeking the equivalent of 140,000 cu m of natural gas. OilPrice also noted that the rejected BP price was higher than the $20.70 per mmBtu Pakistan paid for an emergency LNG cargo in July.

OilPrice added that Pakistan’s power generation costs surged 38% in July from a year earlier, driven by the LNG price jump and the need to buy on spot markets after it lost supply under long term deals from QatarEnergy. The country returned to spot purchases after a cargo expected from Qatar did not arrive, following Qatar’s extension of force majeure on LNG exports amid ongoing disruption tied to the Strait of Hormuz.

Latest closeNat gas $2.954 ▲0.7%

More like this

Sources