ISLAMABAD: Pakistan has decided not to approve the lowest international bids for two spot liquefied natural gas cargoes after receiving indications that Qatar may provide LNG supplies at significantly cheaper rates under long term arrangements, officials familiar with the matter said on Thursday.

The move came after Pakistan LNG Limited informed global energy firms BP Singapore and TotalEnergies Gas and Power Limited that their offers for the cargoes had not been accepted despite both companies emerging as the lowest bidders in the tender process.

Officials said the government believes it may secure more favourable LNG supplies from Qatar at a time when the country is struggling to manage rising energy costs, circular debt and pressure on foreign exchange reserves. The expected Qatari supplies are likely to reduce Pakistan’s dependence on expensive spot market purchases that have repeatedly strained the national exchequer.

Sources said Qatar had earlier shown hesitation in routing additional LNG cargoes to Pakistan because of fears linked to regional tensions and possible disruption in the Strait of Hormuz, one of the world’s busiest energy shipping corridors. Concerns over maritime security had reportedly slowed discussions over extra shipments in recent months.

However, recent diplomatic developments in the region and Pakistan’s evolving strategic engagement appear to have improved confidence regarding the safe transportation of LNG cargoes through the Gulf route. Officials believe this shift has opened the door for fresh negotiations with Doha on urgent energy supplies ahead of peak summer demand.

Energy experts say Pakistan’s decision to hold back approval of the spot bids reflects a broader strategy to lock in lower priced fuel arrangements instead of making costly emergency purchases from volatile global markets. The development is being closely watched by industry circles as the country races to secure affordable energy supplies and avoid another summer power crisis.