Pakistan LNG Limited has issued its first spot liquefied natural gas (LNG) tender since December 2023, as the country moves to address fuel shortages and stabilise electricity supply amid global market disruptions.
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The tender seeks three LNG cargoes of around 140,000 cubic metres each, scheduled for delivery between late April and mid-May at Port Qasim in Karachi. The move comes as Pakistan faces intermittent power shortages and rising demand, worsened by disruptions in international energy supply chains.
Power Minister Awais Leghari said the procurement is aimed at meeting immediate electricity needs while reducing reliance on more expensive alternatives such as diesel and furnace oil. He also noted uncertainty over future LNG shipments from long-term suppliers, particularly Qatar.
The tender follows recent power shortages that led to widespread outages across parts of the country, exposing vulnerabilities in fuel availability. A decline in hydropower generation combined with supply disruptions has placed additional pressure on the national grid.
Global LNG markets have been under strain due to geopolitical tensions, including conflict-related disruptions affecting shipping routes. Pakistan has reportedly not received new LNG cargoes loaded after late February, contributing to domestic shortages.
Despite challenges, officials say increased use of renewable energy and domestic power sources has helped cushion some of the impact. However, LNG remains essential to meet peak summer demand and ensure grid stability.
The government has also explored alternative supply options, including potential LNG shipments from Azerbaijan’s state energy company SOCAR under a previously signed framework agreement.
Analysts warn that continued global supply constraints and high prices could further pressure energy-importing countries like Pakistan, particularly during periods of high seasonal demand.
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The latest tender highlights Pakistan’s ongoing struggle to balance energy security, affordability, and shifting global LNG market conditions.