Pakistan seeks two spot LNG cargoes as supply concerns persist

Pakistan LNG Limited (PLL) has invited bids from international suppliers for two spot liquefied natural gas (LNG) cargoes to help meet domestic energy demand amid continued uncertainty in regional energy markets.

According to a tender issued by the state-owned company, each cargo will carry 140,000 cubic metres of LNG, with a tolerance of plus or minus 10%. The cargoes are scheduled for delivery at the Pakistan GasPort Consortium Terminal (PGPL) at Port Qasim, Karachi, during the June 13-14 and June 20-21, 2026 windows.

Under amended public procurement rules, interested suppliers must submit bids by 2:00 pm on June 11, while bids will be opened at 2:30 pm the same day. PLL will notify participants of the outcome by 10:00 pm.

Market participants expect bids to exceed $19.50-20 per million British thermal units (MMBtu), compared with the Japan-Korea Marker (JKM) benchmark of $18.89 per MMBtu.

If both cargoes are secured, the total number of spot LNG shipments procured by Pakistan since March 2026 will rise to four, reflecting the government's efforts to supplement gas supplies through the spot market.

Pakistan had earlier opted against purchasing spot LNG after arranging additional supplies from Qatar. However, the country has returned to the spot market amid reduced LNG availability from the Gulf region and concerns over supply disruptions linked to the US-Iran conflict and the closure of the Strait of Hormuz.

The disruption in LNG flows contributed to gas shortages and energy load-shedding in Pakistan. Authorities subsequently procured spot cargoes to ease supply constraints.

During its previous tender, PLL rejected bids for two spot cargoes after determining that the offered prices were too high and could have added about $22 million to the cost of a single cargo.

Pakistan relies increasingly on imported LNG as domestic gas production continues to decline. The country maintains a long-term LNG supply agreement with Qatar, which remains its primary supplier of imported gas.