ISLAMABAD: Pakistan has moved into emergency mode to secure liquefied natural gas (LNG) supplies, as disruptions in the Strait of Hormuz have delayed expected cargoes from QatarEnergy, forcing the government to turn to the expensive spot market.
Pakistan LNG Limited (PLL) on Wednesday issued tenders seeking bids from international LNG suppliers for two cargoes to be delivered between May 12-14 and May 24-26, 2026. The bidding process is being conducted on an unusually fast-track basis, with technical bids scheduled to be opened at 2:30pm on May 7 (today), followed by commercial offers of qualified bidders, and the final award to be announced by 10pm the same day. Bid validity will also expire at that time.
Under the tender terms, the successful bidder will be required to submit a performance guarantee by May 11, while PLL will issue a formal confirmation notice for the cargo by the same date. The LNG shipments will be received at the Pakistan GasPort Consortium Limited terminal at Port Qasim.
The move comes amid a deepening supply crisis triggered by geopolitical tensions in the Middle East. Pakistan was expecting multiple LNG cargoes from Qatar, but shipments have been disrupted due to security concerns surrounding transit through the Strait of Hormuz. The government made diplomatic efforts to secure safe passage, with Petroleum Minister Ali Pervaiz Malik engaging the Iranian ambassador and state institutions, including the National Crisis Management Cell, holding consultations with Iranian and US authorities. However, the situation remains unresolved, and Qatar has shown reluctance to dispatch vessels through the volatile route.
As a result, several cargoes already loaded in Qatar remain stranded. Officials had earlier hoped that the situation would ease and allow the delayed shipments to proceed, but continued uncertainty has forced a shift towards immediate procurement from the international market.
Recent spot market activity indicates that LNG prices remain elevated a $16.87 per mmbtu. On April 24, Pakistan received bids ranging from $17.998 to $18.880 per mmbtu from major suppliers, including TotalEnergies, Vitol and OQ Trading. One cargo was secured from TotalEnergies at a revised price of $18.4 per mmbtu, while bids for additional cargoes were rejected in anticipation of Qatari supplies that have yet to materialize.
The LNG carrier Seapeak Magellan earlier delivered at PGPL terminal on April 30, 2026 at 11am with around 140,000 cubic meters of LNG at Port Qasim. The PGPCL terminal is currently handling approximately 300 million cubic feet per day (mmcfd) of re-gasified LNG, of which about 250 mmcfd is being supplied to the power sector. An additional 150 mmcfd of local gas is being blended at RLNG rates, while around 45 mmcfd is being diverted to plants operated by K-Electric.
According to Sui Northern Gas Pipelines Limited, Pakistan requires at least two LNG cargoes during May to meet rising demand. The Power Division has said that improved fuel management and increased hydropower generation of around 6,000 MW have helped avoid widespread load shedding so far, although revenue-based power cuts continue in some areas.
