Pakistan LNG Restricted has issued its first spot tender for liquefied pure gasoline (LNG) since December 2023 amid provide shortfalls triggered by the US-Israeli battle on Iran.
The corporate is looking for bids from worldwide suppliers for 3 LNG cargoes of round 140,000 cubic metres every for supply on April 27-30, and on Might 1-7 and 8-14 at Port Qasim in Karachi, in response to an commercial on Thursday for the tender that closes on April 24.
Federal Minister of Power Awais Leghari informed Reuters the LNG tender was aimed toward assembly rising energy demand and to chop reliance on costlier diesel and furnace oil.
Authorities is just not positive when it is going to get extra cargoes from Qatar, Leghari mentioned.
The tender additionally follows energy shortages that triggered widespread outages final week, as a drop in hydropower and disruptions to LNG provides uncovered gaps in gas availability amid rising demand.
Pakistan has not acquired any LNG cargoes loaded after the Center East battle started on February 28 and Iran shut off nearly all delivery by means of the Strait of Hormuz, which connects the Gulf to the Indian Ocean.
Qatar is determined by entry by means of the strait to maneuver its vitality output. It provided the majority of the 6.64 million metric tons of LNG Pakistan imported final yr, in response to Kpler information.
Azerbaijan’s state vitality firm SOCAR mentioned on Tuesday it is able to provide LNG to Pakistan as quickly because it receives a request from Islamabad. A framework settlement signed in 2025 between SOCAR Buying and selling and Pakistan LNG permits the South Asian purchaser to purchase cargoes beneath an accelerated process.
Islamabad cancelled 21 LNG cargoes for 2026–27 beneath a long-term take care of Eni, anticipating slower demand progress and elevated energy provide from photo voltaic vitality. The LNG provide disruptions examined that shift, at the same time as a larger reliance on home and renewable energy cushioned the affect.
Pakistan stays uncovered to provide shocks, nevertheless, and LNG continues to be wanted to satisfy peak summer time demand and restrict outages.
Iran’s blockade of the Strait of Hormuz, which generally dealt with 20% of every day world LNG flows earlier than the battle, pushed Asian spot costs LNG-AS to three-year highs, although they’ve pulled again some lately. They had been final at $16.05 per million British thermal models (mmBtu), a 54% improve since February 23.
Analysts have slashed world LNG provide outlooks, and anticipate excessive costs and the provision scarcity to trigger demand destruction throughout Asia.
