Pakistan issues urgent LNG tender amid Strait of Hormuz supply disruption
Pakistan has issued an urgent tender for one LNG cargo to be delivered this week at Port Qasim as disruptions in the Strait of Hormuz affect energy flows. The country is seeking spot supplies to meet domestic demand amid continued regional tensions.
ISLAMABAD: Pakistan has moved to secure an urgent liquefied natural gas (LNG) cargo for delivery this week as tensions around the Strait of Hormuz continue to disrupt energy supplies through one of the world’s most critical shipping lanes.
The state-run Pakistan LNG Limited has invited international suppliers to submit bids for one LNG cargo on a delivered ex-ship basis at Port Qasim, according to a tender document published by the Public Procurement Regulatory Authority. The cargo is scheduled for delivery between Tuesday and Saturday.
Under the tender, Pakistan is seeking 140,000 cubic metres of LNG, with a tolerance of plus or minus 10%. The latest move comes as concerns over shipping through the Strait of Hormuz have intensified, affecting buyers that depend on cargoes moving through the route.
Supply pressure grows
The Strait of Hormuz is a major route for global LNG trade, especially for shipments from Qatar, which is among Pakistan’s main suppliers. Disruptions to vessel movement there can force importers into the spot market, where cargoes are typically costlier and more difficult to arrange on short notice.
Pakistan has been facing recurring pressure on energy supplies as the regional conflict has affected LNG flows, prompting the government to look for additional spot purchases to meet domestic demand. The latest tender follows attacks on commercial vessels in the Strait of Hormuz, which have increased concerns among shipowners, insurers and energy buyers over the safety of transit through the waterway.
On June 11, Pakistan chose to buy LNG from the spot market to meet the requirements of power producers. Earlier, the government had obtained gas cargoes from Qatar.
Reliance on imported gas
Pakistan’s domestic gas production has been declining each year, while dependence on imported gas has been rising. The country has a long-term LNG supply arrangement with Qatar, but deliveries under that arrangement were suspended because of the US-Iran conflict.
The urgent tender reflects the pressure on authorities to cover local demand as supply uncertainty persists in the Gulf energy corridor.
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