Pakistan LNG Limited (PLL) has floated a third tender within two weeks to procure one liquefied natural gas (LNG) cargo from the spot market, as the escalating US-Iran conflict disrupts Qatari supplies and the country seeks affordable electricity to meet surging demand. The tender, announced on Thursday, targets delivery between July 15-16 at Port Qasim, Karachi.
Details of the New Tender
The state-owned PLL invited bids from international suppliers for one LNG cargo on a Delivered Ex-Ship (DES) basis. The deadline for submissions is July 10, 2026, with bids opened the same day. This follows two earlier tenders: one on June 27 for supply between June 30 and July 4, and another on July 1 for July 10-11 delivery.
Previous Tender Results
For the June 30 to July 4 window, BP Singapore was the sole bidder at $16.7372 per million British thermal units (mmBtu) and was declared technically and commercially responsive. The PLL Board approved that bid for cargo delivery on July 4. For the July 10-11 window, two bids were received, and TotalEnergies Gas & Power Limited was selected with an offer of $17.3700/mmBtu.
Impact of US-Iran Conflict
The US-Israel-Iran conflict has disrupted Qatari LNG supplies, forcing Pakistan to turn to the spot market. Despite the reopening of the Strait of Hormuz, QatarEnergy has extended force majeure to some European and Asian buyers until August-September, making it unlikely that Pakistan will receive its full contracted supply from Qatar under the long-term agreement.
Since the start of the US-Israel war with Iran, Pakistan has secured nine LNG cargoes to meet rising electricity demand amid soaring temperatures. Five of these were supplied by QatarEnergy under the long-term contract, while four were procured from the spot market.
PLL's Mandate
Pakistan LNG Limited, owned by the government, is responsible for procuring LNG to meet the country's gas requirements. The fresh tender underscores the urgency to secure energy as temperatures rise and electricity shortfalls persist.
