ISLAMABAD: Pakistan has secured another spot liquefied natural gas (LNG) cargo at its highest price since March 2026, as continued disruptions to long-term supplies from QatarEnergy force the country to rely on the expensive spot market.
TotalEnergies Gas and Power Limited won a Pakistan LNG Limited (PLL) tender on Monday to supply a 140,000-cubic-metre LNG cargo for delivery on July 27–28, 2026, with a bid of $21.88 per million British thermal units (MMBtu).
PLL received only one bid for the tender, submitted by TotalEnergies. The offer was declared technically and commercially compliant and was subsequently accepted.
PLL had invited international suppliers on July 17 to submit bids for the spot cargo, which marks Pakistan’s seventh spot LNG purchase since March 2026.
The increased reliance on spot purchases follows QatarEnergy’s force majeure declaration on March 4, 2026, after an attack on its Ras Laffan LNG production complex. The disruption, linked to heightened geopolitical tensions around the Strait of Hormuz, has since been extended through August, reducing contracted LNG deliveries to Pakistan.
Earlier this month, PLL awarded another spot cargo to PetroChina International for delivery on July 21–22 at $20.6999 per MMBtu, which had been the highest spot LNG price paid by Pakistan since its return to the international spot market following the regional conflict triggered by the US and Israeli strikes on Iran in late February.
The latest procurement further highlights Pakistan’s growing dependence on the spot LNG market as long-term contractual supplies remain disrupted. Energy officials say frequent spot purchases have become necessary to ensure uninterrupted gas supplies for power generation and industrial consumers.
With the arrival of the latest shipment, Pakistan will have imported 12 LNG cargoes during the current supply period, including seven spot cargoes acquired through international tenders and five government-to-government cargoes supplied by QatarEnergy under the long-term agreement.
The shift to higher-priced spot imports has significantly increased Pakistan’s LNG import bill and is expected to place additional pressure on the country’s energy costs.
According to officials, LNG-based electricity generation currently costs around Rs35.5 per unit. During June 2026, LNG-fired power plants generated approximately 1,480 gigawatt-hours (GWh) of electricity, accounting for 11.02% of Pakistan’s total power generation.
Energy experts warn that continued dependence on expensive spot LNG cargoes is likely to push up electricity generation costs further and could contribute to an increase in Pakistan’s base power tariff in the months ahead.
Story by Khalid Mustafa
