Islamabad: Pakistan has moved to secure additional energy supplies by issuing a fresh tender for liquefied natural gas (LNG), marking its first spot procurement since December 2023. The decision comes as the country faces growing power demand and supply disruptions in the global energy market.
Details of the LNG Tender
The state-run company Pakistan LNG Limited has invited bids from international suppliers for three LNG cargoes, each with an estimated volume of around 140,000 cubic metres. The deliveries are scheduled between late April and mid-May at Port Qasim.
The tender is open until April 24, with shipments expected in three time windows: April 27–30, May 1–7, and May 8–14.
Government’s Energy Strategy
Federal Energy Minister Awais Leghari stated that the LNG procurement is aimed at meeting increasing electricity demand while reducing reliance on more expensive fuels such as diesel and furnace oil.
He also noted uncertainty over future LNG shipments from long-term suppliers, particularly Qatar, which has traditionally been Pakistan’s largest LNG provider.
Supply Challenges and Market Pressure
Pakistan has reportedly not received LNG cargoes loaded after recent geopolitical tensions in the Middle East disrupted shipping routes. The situation has been further complicated by disruptions in global energy logistics and rising spot market prices.
Historically, Qatar has supplied the majority of Pakistan’s LNG imports. However, recent instability has raised concerns about supply reliability and price volatility.
Adding to the complexity, Asian LNG prices have surged significantly in recent months, reflecting tighter global supply conditions and increased demand uncertainty.
Alternative Suppliers and Emergency Options
In response to the situation, other potential suppliers are stepping forward. SOCAR has expressed readiness to supply LNG to Pakistan under an existing framework agreement signed in 2025, which allows faster procurement procedures.
This diversification reflects Islamabad’s effort to secure multiple supply sources to reduce vulnerability to external shocks.
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Broader Energy Context in Pakistan
Pakistan has also been adjusting its long-term energy strategy, including canceling several LNG cargoes for 2026–27 under a contract with Eni, based on expectations of slower demand growth and increased renewable energy contribution.
However, recent shortages and power outages have highlighted the continuing importance of LNG, particularly during peak summer demand when electricity consumption rises sharply.
While renewable energy and domestic sources are gradually expanding, LNG remains a critical component of Pakistan’s energy mix. The current tender reflects both immediate supply pressures and the country’s ongoing struggle to balance affordability, energy security, and demand growth in a volatile global market.
