Pakistan scraps LNG Tender after receiving expensive offer, issues fresh bid call for next cargo

Aftab Maken

ISLAMABAD:  Pakistan LNG Limited (PLL) has rejected the financial bid submitted for its Liquefied Natural Gas tender after the sole participating bidder, BP Singapore, quoted a contract price of US$26.969/MMBtu for the September 4–8 cargo delivery, deeming the offer too expensive to accept.

Official tender documents show the financial bid was opened on September 1, 2026 at 1515 hours (PST), with BP Singapore emerging as the only technically qualified and lowest evaluated bidder — a single-bid scenario that ultimately worked against the offer being accepted.

Background

According to the bid evaluation report, BP Singapore was the sole bidder for the cargo delivery window of September 4–8, 2026, and was found technically qualified, with its commercial offer of $26.969/MMBtu recorded as the lowest evaluated bid by default, since no competing offers were received.

Under Rule 35 of the Public Procurement Rules, 2004, procuring agencies retain the discretion to reject bids that are not competitively priced, particularly in single-bidder situations. Following the rejection, PLL has moved swiftly to re-enter the market, issuing a fresh Invitation to Bid for another LNG cargo of 140,000 cubic metres (+/- 5%) under tender number PLL/IMP/LNGT78-1, this time for a delivery window of September 8–12, 2026.

Bid documents are available from PLL’s Islamabad office or via email request until September 4, 2026, with bids due at the same office by 1400 hours (PST) on September 4, and financial bids to be opened the same day at 1430 hours PST under PPRA rules. PLL, a state-owned entity mandated to procure LNG on a Delivered Ex-Ship (DES) basis at Port Qasim, Karachi, has explicitly reserved the right to reject all bids under Rule 33 of the same procurement rules.

Social Media and Public Reaction

News of the rejected tender drew attention on social media, with several users questioning why only one supplier participated in the earlier bidding round and calling for greater transparency in the procurement process.

Others welcomed PLL’s decision to reject the high-priced offer, viewing it as a sign of fiscal prudence, while some energy-sector commentators expressed concern over the recurring pattern of low bidder participation in Pakistan’s spot LNG tenders.

Expert Analysis

Energy sector analysts note that single-bidder tenders often place procuring agencies in a difficult position, since a lack of competition can push contract prices higher without market pressure to bring them down.

They point out that PLL’s rejection of the $26.969/MMBtu offer and its quick relaunch of a new tender for the following delivery window reflects a strategy of testing the market again rather than accepting an uncompetitive rate, though this also carries the risk of continued weak bidder interest if global LNG spot prices remain elevated.