Pakistan lines up three LNG cargoes to meet peak summer power demand

Pakistan has arranged three LNG cargoes under long-term contracts with Qatar and is seeking an additional spot cargo for early June to meet electricity and other sectoral demand during summer, The News reported, citing official sources in the Petroleum Division. 

Pakistan LNG Limited (PLL) has invited bids for the supply of one LNG cargo on a Delivered Ex-Ship (DES) basis at Port Qasim, Karachi, for the June 6-7, 2026 delivery window.

The matter was discussed during an interaction with media persons attended by Federal Minister for Petroleum Ali Pervaiz Malik, the Secretary Petroleum Division, a Petroleum Division spokesperson, and managing directors of Oil and Gas Development Company Limited (OGDCL) and Pakistan State Oil (PSO).

The Petroleum Division spokesperson said LNG imports had been allowed on a full cost-recovery basis at the request of the Power Division to meet electricity demand.

Officials said LNG shipments arriving under long-term agreements with Qatar remain cost-effective because they were secured on a Cost and Freight (CFR) basis.

They said indigenous gas was also being diverted to power plants as an alternative to more expensive imported LNG.

According to the officials, local gas is being supplied to power plants at a subsidised rate of Rs200 per MMBtu against the standard price of Rs3,500 per MMBtu.

A summary to formalise this pricing mechanism is being prepared for approval by the Economic Coordination Committee (ECC).

Officials also said the government had restored around 400 million cubic feet per day (mmcfd) of gas production after the Middle East conflict.

The supply had earlier been curtailed because of technical issues and security concerns affecting major exploration and production companies, including OGDCL, PPL and Mari Petroleum.

The Petroleum Division said the additional gas supply and LNG arrangements were aimed at supporting power generation and other economic sectors during the summer demand period.