Pakistan resumes LNG spot buying amid supply disruptions

Pakistan LNG Limited has issued its first spot liquefied natural gas (LNG) tender since December 2023, as the country faces supply constraints triggered by disruptions in global energy markets following the US-Israel conflict involving Iran.

The company is seeking international bids for three LNG cargoes of approximately 140,000 cubic metres each. Deliveries are scheduled for April 27–30, May 1–7, and May 8–14 at Port Qasim in Karachi. The tender closes on April 24.

Energy Minister Awais Leghari said the move aims to meet rising electricity demand and reduce dependence on more expensive fuels such as diesel and furnace oil. He added that Pakistan remains uncertain about the timing of future LNG shipments from Qatar, its primary long-term supplier.

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The tender comes amid recent power shortages and widespread outages caused by reduced hydro-power generation and LNG supply disruptions. The situation worsened after instability in global shipping routes and interruptions in gas flows from key sources.

Pakistan has not received LNG cargoes loaded after the escalation of conflict in the Middle East, which also disrupted shipping through critical maritime routes. Qatar, which supplies most of Pakistan’s LNG, relies on these routes for exports.

Other suppliers, including Azerbaijan’s state energy company SOCAR, have expressed readiness to provide LNG to Pakistan under an existing framework agreement signed in 2025. Meanwhile, Pakistan had earlier cancelled several LNG cargoes for 2026–27 under a long-term contract with Eni, expecting lower demand and increased renewable energy contribution.

However, recent supply shocks have highlighted continued reliance on imported LNG, especially during peak summer demand periods. Analysts warn that global LNG prices remain volatile, driven by geopolitical tensions and constrained supply, putting pressure on Asian importers like Pakistan.