Pakistan Rejects Costly LNG Cargo as Blackout Risk Deepens

CommodityGeopolitics
โดย Oilprice.com·PK·Read original
Summary · why it matters

Pakistan may have to extend rolling blackouts after it refused to pay three times the pre-war price for an LNG cargo, which was the only offer its latest emergency tender drew. The single cargo, offered by BP, was priced at $27 per million British thermal units, according to Bloomberg. A senior Pakistan LNG Limited executive said the bid was $26.969 per MMBtu, considered too high against the international price of $23.18 per MMBtu, so a fresh tender has been issued seeking 140,000 cubic meters of natural gas. This compares with $20.70 per MMBtu paid for an emergency cargo in July, which was later topped by another at $21.88 per MMBtu. Power generation costs surged 38% in July from a year earlier due to LNG price jumps and reliance on spot purchases after losing long-term supply from QatarEnergy, which extended force majeure on exports amid the Strait of Hormuz blockade, forcing Pakistan to resort to rolling blackouts lasting up to 24 hours in parts of Karachi.

Impact on stocks 1

Energy Transition & Power Demand · 1 stocks
BP PLC
BP
± MixedDemandrelevance

BP was the sole bidder offering the LNG cargo at $27/MMBtu, which Pakistan rejected as too costly.

Theme Impact 1

Off-coverage companies 2

Pakistan LNG LimitedPrivate▼ Negative
Supplyrelevance

Pakistan LNG Limited rejected the only emergency tender bid at $27/MMBtu, risking extended rolling blackouts from lost supply.

QatarEnergyPrivate▼ Negative
Supplyrelevance

QatarEnergy extended force majeure on LNG exports due to the Strait of Hormuz blockade, cutting supply to Pakistan.

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