Pakistan seeks two spot LNG cargoes after Qatar supply disruption

ISLAMABAD: Pakistan has moved again to the spot market for liquefied natural gas (LNG), seeking two cargoes for June 2026 as supply constraints linked to the closure of the Strait of Hormuz continue to affect flows from Qatar.

Pakistan LNG Limited (PLL), the state-owned company responsible for procuring LNG for domestic use, has invited bids for two cargoes on a Delivered Ex-Ship basis for the Port Qasim terminal in Karachi. According to the tender notice, the deliveries are scheduled for June 13-14 and June 20-21.

The company is seeking cargoes of 140,000 cubic metres each, with a tolerance of plus or minus 10%, under the conditions laid out in the bidding documents. Suppliers can obtain the bid documents until June 11, 2026.

The latest tender comes after the government had earlier declined a bid to purchase LNG from the spot market once it had secured gas cargoes from Qatar. However, the disruption in Qatari supplies has forced Islamabad to re-enter the market to meet demand from power producers.

Pakistan has already experienced severe energy load-shedding following the suspension of LNG shipments from Qatar after the US-Iran war led to the shutdown of the Strait of Hormuz. The government later arranged LNG from the spot market, which helped avert load-shedding.

In the previous tender, PLL rejected bids for two spot cargoes because the offered prices were higher. One of the bids, could have imposed an additional cost of $22 million on consumers for a single cargo.

Rising dependence on imported gas

Pakistan’s domestic gas output has been declining each year, increasing the country’s dependence on imported fuel. The country has a long-term LNG supply arrangement with Qatar, but deliveries under that arrangement were suspended due to the US-Iran war.

The fresh procurement effort reflects the pressure on the energy system as authorities try to secure sufficient gas for electricity generation and domestic consumption amid reduced supplies from the Gulf state.

Port Qasim remains the delivery point for the new cargoes being sought under the tender, with the state buyer looking to close the supply gap through short-term purchases from the international market.