Pakistan Issues First LNG Spot Tender Since 2023 to Meet Rising Power Demand
Pakistan has issued its first spot tender for liquefied natural gas (LNG) since December 2023, as the country looks to address rising electricity demand and manage fuel supply challenges.
The tender has been floated by Pakistan LNG Limited, which is seeking bids from international suppliers for three LNG cargoes.
Tender Details
Each cargo is estimated at around 140,000 cubic metres, with deliveries scheduled for late April and early May at Port Qasim in Karachi. The bidding process is set to close on April 24.
Federal Energy Minister Awais Leghari said the move aims to meet increasing power demand while reducing reliance on more expensive fuels such as diesel and furnace oil.
He also noted uncertainty regarding future LNG supplies under existing arrangements, including shipments from Qatar.
Supply Challenges
The tender comes after recent power shortages and outages linked to reduced hydropower generation and disruptions in LNG supply.
Global supply routes have faced challenges due to geopolitical tensions affecting key shipping lanes, particularly the Strait of Hormuz, which is a major route for global energy shipments.
Pakistan has not received LNG cargoes loaded after late February, highlighting vulnerabilities in supply chains.
Alternative Supply Options
Amid these challenges, SOCAR has expressed readiness to supply LNG to Pakistan under an existing framework agreement signed in 2025.
Market Impact
Global LNG prices have increased significantly in recent months due to supply constraints, although prices have shown some recent stabilization.
Despite efforts to expand renewable energy and reduce dependence on imported fuel, LNG remains essential for meeting peak electricity demand, especially during the summer season.
