Pakistan has rejected the lowest international bids for liquefied natural gas (LNG) imports, signalling a shift in its procurement strategy amid expectations of cheaper supply from long-term agreements with Qatar.
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According to officials familiar with the development, Pakistan opted not to accept the most competitive offers received for two spot LNG cargoes, despite strong participation from global suppliers.
The decision was made even though the rejected bids were considered attractive in the current international market. Sources say the move reflects Islamabad’s expectation that it can secure LNG at lower rates through existing or renewed long-term contracts with Qatar.
Pakistan has cancelled two emergency LNG spot cargo purchases amid hopes of easing tensions in the Middle East and expected continuation of Qatari gas supplies. The decision comes as optimism grows over stability around the Strait of Hormuz.
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Under the proposed arrangement, Pakistan could obtain LNG cargoes through “term contracts” priced at around 13.37 percent of Brent crude oil rates, which officials believe may offer more stable and cost-effective supply compared to volatile spot market purchases.
Pakistan LNG Limited has reportedly informed the lowest bidders, including BP Singapore and TotalEnergies Gas and Power Limited, that their offers were not accepted.
The decision appears linked to positive indications from Qatar regarding the availability of LNG cargoes that could be supplied under more favourable terms. Officials suggest that up to two cargoes may be routed through the Strait of Hormuz, pending final arrangements.
Energy sector sources say Pakistan is attempting to balance immediate import needs with longer-term pricing stability, particularly as global energy markets remain unpredictable.
The move comes as Pakistan continues to manage its energy demand, foreign exchange pressures and fuel import costs, with LNG playing a key role in the country’s power generation mix.
Analysts note that while long-term contracts can provide price stability, reliance on expected future deals also carries risks if market conditions change or supply timelines are delayed.
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Further clarity is expected once formal agreements with Qatar are finalised, which could determine whether Pakistan benefits from the anticipated lower pricing structure in the coming months.