Lead

Pakistan's state-run LNG importer, Pakistan LNG Limited (PLL), has approved a revised bid of $18.4 per million British thermal units (mmBtu) from TotalEnergies for a cargo delivery between April 27 and 30, while rejecting all other bids for early May delivery, as reported by three of the five sources. The bid was initially $18.88 per mmBtu and later revised downward after negotiations, according to sources.

The approval comes amid a deepening energy crisis in Pakistan, exacerbated by the closure of the Strait of Hormuz following US-Israel attacks on Iran, which has disrupted LNG supplies from Qatar, Pakistan's long-term supplier. Multiple sources report that Qatar has declared force majeure on all its global LNG contracts, including those with Pakistan, and that three Qatari LNG cargoes destined for Pakistan were turned back from the strait due to security concerns.

PLL had not imported any cargo last month, according to four of the five sources, and the country is facing a significant power shortfall, with peak demand exceeding supply by more than 4,500 megawatts, leading to six to seven hours of load shedding.

Coverage Comparison

The five source articles, all from Dawn, Pakistan's leading English-language daily, report on a series of tender processes conducted by PLL to secure LNG cargoes on an urgent basis. The reporting timeline spans late April to early May, reflecting the escalating urgency and the challenges of procuring LNG in a strained market.

All five sources consistently report the root cause of the crisis: the closure of the Strait of Hormuz and Qatar's resulting reluctance or inability to dispatch cargoes. However, there are variations in details across the reports:

  • Three of the five sources detail the rejection of bids from BP Singapore and TotalEnergies for May delivery, with bid prices ranging from $16.98 to $18.88 per mmBtu.
  • Three of the five sources focus on the approval of the revised $18.4 per mmBtu bid from TotalEnergies for April 27-30 delivery, noting that other bids were rejected on anticipation that the strait would reopen.
  • One source reports that PLL secured three bids for delivery between April 27 and May 8, with prices ranging from $17.997 to $18.88 per mmBtu, and that three of the four bids received were declared the lowest.
  • Another source focuses on the urgent tenders floated on a 36-hour notice for May 12-14 and May 24-26 delivery, after authorities' expectations of the strait reopening did not materialise.
A reported claim, carried by two of the five sources but not confirmed by others, states that with domestic charges and taxes included, the sale price of regasified LNG is expected to be around $23 per mmBtu, nearly double the rate recorded in March. This figure is not present in the other three sources and should be treated with caution.

Key Claims

  • PLL rejected bids from BP Singapore and TotalEnergies for May delivery: Three of five sources report that Pakistan rejected the two lowest evaluated bids, priced at $17.28 and $16.98 per mmBtu respectively, for delivery windows of May 12-14 and May 24-26.
  • PLL received seven bids for those delivery dates: The same three sources report that PLL received a total of seven bids—three cargoes for May 12-14 and four for May 24-26—against urgent tenders floated a day earlier.
  • PLL approved a revised bid of $18.4 per mmBtu from TotalEnergies: Three of five sources report that this bid was approved for delivery between April 27 and 30, after TotalEnergies initially bid $18.88 per mmBtu and later revised it downward.
  • Qatar declared force majeure and was reluctant to send cargoes: All five sources report that Qatar, Pakistan's long-term supplier, declared force majeure on all its global LNG contracts and was reluctant to dispatch LNG-loaded cargoes stranded in the Gulf due to the Strait of Hormuz closure. Three of the five sources note that three Qatari cargoes meant for Pakistan had returned from the waterway due to security concerns.
  • PLL did not import any cargo last month: Four of five sources report that PLL did not import any cargo in the previous month, leading to a reduced basket of LNG volumes and higher terminal charges.
  • Power Division placed an order for 400 million mmcfd of LNG: One source reports that the Power Division had placed an order with the Petroleum Division to arrange around 400 million mmcfd of LNG for power generation, amid hopes of the opening of international supply routes.
  • The Oil and Gas Regulatory Authority (Ogra) notified a 19-22 per cent increase in RLNG prices: All five sources report that Ogra increased the price of regasified LNG to $12.50-$14 per mmBtu for sales at the distribution stage by the two Sui gas companies. The increase was mainly due to higher terminal charges amid lower import volumes.
  • Summer peak demand typically rises above 28,000 MW: This claim appears in one source, which notes that current peak demand is around 19,000-20,000 MW during peak hours and below 10,000 MW during daytime. This claim is not present in other sources but aligns with known seasonal patterns in Pakistan.

Perspectives

While all sources are from Dawn and represent a Pakistani perspective, they collectively portray the crisis from the viewpoint of the country's energy authorities, highlighting their efforts to secure supplies through a series of urgent tenders. The reporting suggests a government that is proactive but constrained by geopolitical realities and a tight LNG market.

The sources also convey the strain on consumers, as regulatory price increases and expected higher sale prices of RLNG hint at growing costs. The mention of load shedding and power shortfalls reflects the immediate human impact of the supply disruptions.

No independent or international sources are included in the provided material, so the article relies solely on Pakistani official reporting. Future coverage might benefit from international perspectives on the Strait of Hormuz situation and its implications for global LNG trade.