Pakistan Secures LNG Cargoes from Spot Market to Meet Power Demand
Pakistan has arranged three liquefied natural gas (LNG) cargoes from the spot market to help meet electricity demand ahead of the peak summer season.
According to officials, Pakistan LNG Limited received multiple bids after issuing a tender to address an estimated power shortfall of around 4,500 megawatts.
The procured cargoes are priced higher than Pakistan’s long-term LNG supply agreement with QatarEnergy, which typically ranges between $7 and $9 per mmBtu. The new spot purchases also exceed recently notified RLNG prices by Oil and Gas Regulatory Authority.
Among the bids, TotalEnergies offered LNG at $18.88 per mmBtu for delivery between April 27 and 30. Vitol Bahrain quoted $18.54 per mmBtu for May 1–7, while OQ Trading submitted a bid of $17.997 per mmBtu for May 8–14. Each cargo is expected to supply approximately 100 million cubic feet per day (mmcfd) of gas.
Officials noted that the procurement follows supply disruptions linked to the closure of the Strait of Hormuz.
To manage increasing electricity demand, the government directed relevant departments to arrange additional LNG supplies to support gas-based power generation. LNG remains a comparatively cost-effective option when compared with diesel-based power generation, which has become significantly more expensive.
Authorities have indicated that maintaining adequate LNG supply is important to help manage fuel costs and ensure stable electricity generation during the high-demand summer period.
