Islamabad: Pakistan has decided to reject the lowest international bids for liquefied natural gas after receiving positive signals of cheaper supply from Qatar. The move is part of a broader strategy to reduce energy costs and rely more on long term agreements.
Officials say Pakistan is expecting LNG supply from Qatar under long term contracts at a rate linked to 13.37 percent of Brent crude oil prices. This is believed to be significantly cheaper than current spot market rates.
As a result, the government chose not to accept recent competitive offers from global suppliers. The decision was formally communicated to BP Singapore and TotalEnergies Gas and Power Limited, whose bids were not approved.
Long Term Qatar Deal Seen as Key to Lower Energy Costs
Meanwhile, sources suggest that Pakistan is prioritising stable and cheaper energy imports from Qatar over short term market purchases. The expected shipments will be delivered through the Strait of Hormuz under existing agreements.
In addition, energy experts believe this decision could save the country millions of dollars and help ease pressure on foreign exchange reserves. However, they also note that the benefits will depend on timely and consistent supply from Qatar.
Looking ahead, Pakistan’s energy policy appears to be shifting towards long term contracts to ensure price stability and reduce dependence on volatile global markets.
