Pakistan cancels LNG spot bids amid hopes of easing Middle East tensions

Pakistan LNG Limited, a government subsidiary that procures LNG from the international market, has cancelled two of the lowest bids, expecting the situation in the Middle East to improve, which will lead to the opening of the Strait of Hormuz and the resumption of Qatari supplies. Pakistan LNG Ltd. did not award an emergency tender seeking two shipments for May delivery that closed Thursday, reported Bloomberg on Friday, citing traders with knowledge of the matter. As per the report, the government decided on the view that the conflict between the US and Iran was easing, and that Pakistan would soon receive two cargoes from Qatar. Last week, PLL invited bids from international suppliers for the procurement of two LNG cargoes to be delivered later this month at Port Qasim, Karachi. The cargoes were to be supplied on a Delivered Ex-Ship (DES) basis, with delivery windows scheduled for May 12–14 and May 24–26. In its report, Bloomberg said that shunning spot shipments is a risky gamble as it could worsen the nation’s gas shortfall, which has resulted in widespread blackouts. However, Pakistan’s supplies under its long-term contract with Qatar are currently about half the price of those from the spot market, it added. On Thursday, Prime Minister Shehbaz Sharif, in a telephone conversation with Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, Prime Minister and Foreign Minister of Qatar, assured Qatar that Pakistan would continue to support diplomatic efforts aimed at ensuring security and stability in the Middle East. The Qatari prime minister expressed his appreciation for Pakistan’s continued role in promoting peace and stability in the region.

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