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Pakistan Shuns BP LNG Spot Offer as Prices Triple Pre-War Levels

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State-owned Pakistan LNG did not select BP's (BP) offer for a liquefied natural gas cargo arriving by Sept. 8 due to exceptionally high prices, which reached nearly three times pre-war spot levels, a source familiar with the bidding process told.

The government considers the cargo, which was offered at $27 per million British thermal units, to be too expensive, the source said.

The company did not receive any other offers, according to a document available on Pakistan LNG's website. It reissued its tender for an LNG shipment and is now seeking for a cargo before Sept. 12, with offers due on Friday.

The news was first reported by Bloomberg.

Pakistan is maximizing power generation from diesel- and coal-fired power plants to cushion the impact of high LNG prices on electricity bills, following war-driven supply disruptions.

Lower availability of LNG, however, may lead to rolling blackouts at night, when solar generation drops, Bloomberg said.

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