By Staff Reporter
ISLAMABAD: Pakistan LNG Limited has invited international suppliers to bid for three liquefied natural gas cargoes in its first spot tender since December 2023, as the country scrambles to address acute energy shortfalls triggered by the US-Israeli war on Iran and a resulting blockade of the Strait of Hormuz.
The state-owned buyer is seeking roughly 140,000-cubic-meter cargoes on a delivered-ex-ship basis at Port Qasim in Karachi, according to an advertisement published on Thursday. Delivery windows are April 27-30, May 1-7 and May 8-14. Bids are due by April 24. The tender comes as Pakistan has received no LNG cargoes loaded after Feb. 28, when Iran effectively shut shipping through the Strait of Hormuz — the chokepoint that normally carries about one-fifth of global LNG flows. Qatar, which accounted for the bulk of Pakistan’s 6.64 million metric tons of LNG imports last year, has declared force majeure on supplies routed through the waterway.
Power Minister Sardar Awais Ahmad Khan Leghari said the tender is intended to meet rising electricity demand and reduce reliance on more expensive diesel and furnace oil. The government is uncertain when additional cargoes from Qatar will resume, he said.
Leghari also told a press conference last week that load-shedding during peak hours will continue until LNG supplies are restored. Pakistan is already ramping up furnace-oil use and delaying nuclear-plant maintenance to bridge the gap. The country faces a power shortfall of about 3,400 megawatts, largely because lower rainfall and reduced irrigation needs have curtailed hydropower output from reservoirs.
The disruptions have exposed Pakistan’s vulnerability despite earlier efforts to diversify. Islamabad canceled 21 LNG cargoes slated for 2026-27 under a long-term contract with Eni SpA, betting on slower demand growth and rising solar generation. The current crisis has tested that strategy, though greater use of domestic and renewable power has softened the blow. LNG remains essential for meeting peak summer demand and limiting outages.
Azerbaijan’s state energy company SOCAR said it stands ready to supply LNG to Pakistan as soon as it receives a formal request from Islamabad. A framework agreement signed in 2025 between SOCAR Trading and Pakistan LNG allows the South Asian buyer to purchase cargoes under an accelerated procedure.
Pakistan LNG Limited, a wholly owned subsidiary of Government Holdings Private Ltd. and operating under the Ministry of Energy’s Petroleum Division, is responsible for importing, buying, storing, supplying and selling LNG and regasified gas. It manages the entire supply chain from procurement to end users.
The conflict has sent Asian spot LNG prices surging. The benchmark LNG-AS contract reached three-year highs before pulling back somewhat and was last quoted at $16.05 per million British thermal units — a 54% increase since Feb. 23. Analysts have cut global supply forecasts and warned that sustained high prices and shortages are already triggering demand destruction across Asia. Pakistan relies heavily on natural gas for power generation and faces steadily declining domestic production, leaving it exposed to swings in global prices and supply shocks.
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