Pakistan LNG has cancelled the two lowest bids amid expectations that the situation in the Middle East will improve, potentially leading to the reopening of the Strait of Hormuz.

Pakistan LNG on Thursday received seven bids for two spot LNG cargoes as supply disruptions linked to the Middle East conflict forced the country to seek alternatives.

The lowest bid for the May 12-14 window was received from BP Singapore at USD 17.28 per million British thermal units (mmbtu), while for the May 24-26 window, the lowest bid came from TotalEnergies at USD 16.98 per mmbtu.

The Middle East conflict has disrupted Pakistan’s long-term LNG supply from Qatar, including through shipping constraints in the Strait of Hormuz. With term supplies affected and summer power demand rising, Pakistan has returned to the spot market for the first time since late 2023. The tenders are intended to fuel power plants and help prevent load-shedding during peak summer months.

For the May 12-14 delivery of 140,000 cubic metres, three bids were received. BP Singapore submitted the lowest offer at USD 17.284 per mmbtu, followed by PetroChina International Singapore at USD 17.69 per mmbtu and Vitol Bahrain at USD 17.84 per mmbtu.

For the May 24-26 delivery window, four companies submitted bids. TotalEnergies Gas Power offered the lowest price at USD 16.98 per mmbtu. The remaining bids came from SOCAR Trading at USD 17.21 per mmbtu, PetroChina International Singapore at USD 17.49 per mmbtu and OQ Trading at USD 18.58 per mmbtu.