ISLAMABAD: Pakistan has secured four liquefied natural gas (LNG) cargoes, including three under long-term agreements with Qatar and one from the spot market, to meet the growing energy requirements of the power sector and other economic activities during the summer season.
As part of its supply management strategy, Pakistan LNG Limited (PLL) on Wednesday invited bids for the delivery of one LNG cargo on a Delivered Ex-Ship (DES) basis at Port Qasim, Karachi, for the June 6-7, 2026 delivery window.
The developments were shared during a media briefing attended by Federal Minister for Petroleum Syed Ali Pervaiz Malik, Petroleum Secretary Hamed Yaqoob Sheikh, senior officials of the Petroleum Division, and the managing directors of Oil and Gas Development Company Limited (OGDCL) and Pakistan State Oil (PSO).
Officials informed journalists that the government is currently diverting indigenous natural gas to power plants at a subsidized rate of Rs200 per million British thermal units (MMBtu), significantly lower than the prevailing LNG-based fuel cost of around Rs3,500 per MMBtu.
A summary to formally implement this pricing mechanism is being prepared for submission to the Economic Coordination Committee (ECC) for approval.
According to the Petroleum Division, the Power Division had requested additional LNG supplies to support electricity generation during the high-demand summer months. In response, the government approved LNG imports on a full cost-recovery basis to ensure uninterrupted power supply across the country.
Officials noted that the three cargoes being supplied under long-term contracts with Qatar remain economically attractive as they are procured on a Cost and Freight (CFR) basis, providing a cost-effective solution compared to spot market purchases.
The Petroleum Division also highlighted efforts to strengthen domestic energy supplies. Following disruptions linked to regional tensions in the Middle East, Pakistan successfully restored approximately 400 million cubic feet per day (mmcfd) of natural gas production.
The restored output had previously been affected by technical issues and security-related challenges faced by major exploration and production companies, including OGDCL, Pakistan Petroleum Limited (PPL), and Mari Petroleum.
Officials said the combined strategy of increasing local gas production and securing LNG imports is aimed at ensuring energy security, supporting industrial activity, and meeting peak electricity demand during the summer season.
Story by Wasim Iqbal
