PLL reissues LNG tender after rejecting two costly bids

Pakistan LNG Limited (PLL) has put out a new tender for one cargo arriving between September 12 and 16, following the refusal of two bids from BP Singapore on cost grounds. The first offer, $26.9 per MMBtu, was for a cargo landing September 4 to 8, and PLL found it too dear. BP Singapore came back with $26.7128 per MMBtu for the September 8 to 12 window, but that revised price was also turned down as excessive.

The tender comes amid a shortage of RLNG, the regasified form of LNG, which has hurt gas-fired power plants and fed into electricity outages. Last week, the Power Division put the blame indirectly on the Petroleum Division, linking prolonged outages to short RLNG for three Punjab plants that run on it. Business Recorder reported, citing well-informed sources, that Qatari contract supplies were suspended under force majeure, pushing PLL onto the spot market.

The federal government apologised for night-time load shedding, saying contracted Qatari LNG was unavailable. A delayed RLNG cargo had also tightened fuel availability, and the supply disruption left power plants with about 5,000 MW of capacity idle, adding pressure to the electricity system.