Islamabad (TDI): Islamabad has moved to secure emergency energy supplies as Pakistan LNG Limited issued its first spot tender for liquefied natural gas (LNG) since December 2023, amid supply disruptions linked to the ongoing Middle East conflict.
According to the tender notice, the company is seeking bids for three LNG cargoes of approximately 140,000 cubic metres each, with deliveries scheduled between April 27 and May 14 at Port Qasim.
Federal Minister for Energy Awais Leghari said the move aims to meet rising electricity demand and reduce reliance on more expensive fuels such as diesel and furnace oil. He added that uncertainty persists over the timing of further LNG supplies from QatarEnergy, Reuters reported.
The tender comes in the wake of recent power shortages that led to widespread outages, as reduced hydropower generation and disruptions in LNG imports exposed vulnerabilities in the country’s energy mix.
Pakistan’s LNG supply chain has been severely affected by the closure of the Strait of Hormuz, a key global energy corridor handling around 20% of daily LNG flows prior to the conflict. The blockade has hindered shipments from Qatar, which remains Pakistan’s primary LNG supplier.
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Amid the shortfall, Azerbaijan’s state energy firm SOCAR has indicated readiness to supply LNG under a 2025 framework agreement, offering Pakistan an alternative procurement channel through accelerated procedures.
Despite earlier expectations of reduced LNG demand, reflected in Islamabad’s decision to cancel 21 cargoes under a long-term deal with Italy’s Eni, current disruptions have highlighted the continued importance of LNG in meeting peak summer demand.
Global LNG markets have also reacted sharply, with Asian spot prices rising significantly amid supply uncertainty, though they have eased slightly in recent days. Analysts warn that continued volatility and constrained supply could impact demand patterns across the region.
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Officials say Pakistan’s increasing reliance on domestic and renewable energy sources has helped cushion the immediate impact, but LNG remains critical to ensuring energy security during periods of high demand.
