ISLAMABAD: Amid the closure of the Strait of Hormuz that choked liquefied natural gas (LNG) supplies from Qatar, Pakistan is again seeking to buy LNG from the spot market to meet the demand from power producers.
Background of the Crisis
Earlier, the government rejected a bid to buy LNG from the spot market after it secured gas cargoes from Qatar. However, it is now seeking bids for two LNG cargoes from the spot market. Pakistan has already witnessed massive energy load-shedding after the suspension of LNG supplies from Qatar due to the US-Iran war that resulted in the shutdown of the Strait of Hormuz. Later, the government arranged LNG from the spot market, which saved the country from load-shedding.
Previous Tender Rejection
During the last tender, Pakistan LNG Limited rejected bids for two spot cargoes, which demanded higher rates and could force consumers to pay an additional $22 million for one cargo.
New Tender Details
Pakistan LNG Ltd has invited fresh bids for two cargoes scheduled for delivery in June 2026 at Port Qasim amid limited gas supplies from the Gulf Arab state of Qatar. Pakistan LNG Ltd, a state-owned company mandated to procure liquefied natural gas for domestic consumption, has issued a tender for two LNG cargoes on a Delivered Ex-Ship (DES) basis for Karachi's Port Qasim terminal. The cargoes are scheduled for delivery on June 13-14 and June 20-21, according to the tender notice. The company seeks cargoes of 140,000 cubic metres each, with a tolerance of plus or minus 10% under the terms specified in bid documents. Suppliers can obtain bid documents until June 11, 2026.
Growing Reliance on Imports
Pakistan's local gas production is shrinking every year and its reliance on imported gas is increasing. Pakistan has a long-term LNG supply contract with Qatar, but cargo deliveries were suspended due to the US-Iran war.
