ISLAMABAD: Pakistan has floated a fresh spot liquefied natural gas (LNG) tender as continued supply disruptions linked to the Strait of Hormuz crisis and QatarEnergy’s force majeure have compelled the country to secure additional cargoes from the international spot market.
Acting on the directives of the National Crisis Management Committee (NCMC), Pakistan LNG Limited (PLL) has invited bids for the purchase of one spot LNG cargo of approximately 140,000 cubic metres for delivery at the Pakistan GasPort Consortium Limited (PGPCL) terminal during July 15–16.
The latest procurement follows QatarEnergy’s decision to extend its force majeure on LNG supplies to Pakistan until August. The force majeure was initially declared on March 4 after an attack on the Ras Laffan LNG Complex, Qatar’s largest LNG production facility. Ongoing security concerns surrounding the Strait of Hormuz have further raised the risk of prolonged supply disruptions.
The interruption of long-term LNG supplies is expected to increase Pakistan’s dependence on the spot market, where prices are substantially higher than those under its long-term government-to-government agreements with QatarEnergy. Under these contracts, LNG is priced at 13.37% and 10.2% of the Brent crude benchmark. Increased reliance on higher-priced spot cargoes is likely to raise the cost of RLNG-based electricity generation and add pressure on consumer power tariffs.
According to the tender issued by PLL on July 9, 2026, international LNG suppliers have been invited to submit bids by 2:30 pm on July 10, with bid opening scheduled for 3:30 pm following technical and commercial evaluations.
Under the amended Public Procurement Regulatory Authority (PPRA) rules, PLL must communicate its acceptance or rejection of the lowest evaluated bid by 10:00 pm on the same day.
Meanwhile, TotalEnergies is scheduled to deliver another spot LNG cargo to Pakistan during July 10–11 after winning an earlier tender with a bid price of $17.37 per MMBtu, helping meet the country’s immediate gas demand.
Since supply disruptions began following the regional conflict involving Iran in February 2026, Pakistan has received five term LNG cargoes from QatarEnergy under its long-term supply agreement. These include:
- Al Kharaitiyat (210,000 cubic metres) – May 12
- Mihzem (160,000 cubic metres) – May 16
- Fuwairit (123,000 cubic metres) – May 28
- Lebrethah (164,000 cubic metres) – June 12
- MRAIKH (170,148 cubic metres) – June 22
Although these cargoes had been loaded before the regional conflict escalated, their deliveries were delayed due to security concerns in the Gulf.
In addition to the term supplies, Pakistan has imported three spot LNG cargoes this year. The most recent vessel, ARADA, arrived on July 4 at a price of $16.7372 per MMBtu. Earlier spot shipments included Seapeak Magellan, supplied by TotalEnergies and delivered on April 30, and BW Helios, sourced from Oman, which arrived on June 9.
With the arrival of TotalEnergies’ cargo on July 10–11 and the proposed spot shipment for July 15–16, Pakistan’s LNG imports this year are expected to reach 10 cargoes, comprising five long-term cargoes from QatarEnergy and five spot market purchases, reflecting the country’s growing reliance on the spot market to safeguard energy supplies amid ongoing regional uncertainty.
Story by Khalid Mustafa
