Pakistan back to spot LNG market after renewed Hormuz escalation

July 10, 2026 (MLN): Pakistan LNG has issued a tender to procure an emergency LNG cargo for delivery on July 15-16, after renewed hostilities in the Strait of Hormuz forced the cancellation of a scheduled shipment from Qatar.

The decision was taken on Wednesday, following the cancellation of a Qatari cargo that was originally due to arrive in Pakistan later this month, according to Bloomberg.

Pakistan has historically sourced almost all of its LNG from Qatar under long-term, fixed-price agreements, but procurement has remained troubled since the Iran war began on February 28, which halted vessel traffic through the Strait of Hormuz.

This marks the latest in a series of emergency tenders Pakistan has floated in recent months, as prolonged disruption through Hormuz and the fresh flare-up push the country back toward the spot market for cargoes.

Last week, Pakistan LNG bought its second spot cargo in as many weeks, underscoring how slowly Persian Gulf LNG flows have recovered.

As of Thursday, tanker traffic through the Strait of Hormuz came to a standstill once again, after the US and Iran exchanged strikes over two consecutive days  with US forces hitting Iranian targets and Iran striking sites in Bahrain, Qatar, and Kuwait.

The current disruption is not new for Pakistan's LNG procurement calculus.

Back in May, when Qatari supply briefly stabilised, Federal Minister for Petroleum Ali Pervaiz Malik had told the Senate Standing Committee on Petroleum that spot cargoes in the international market were trading between $18 and $20 per mmbtu significantly above the cost of Pakistan's long-term contracted volumes, prompting the minister to note that cheaper Qatari supply made more economic sense whenever it was available.

Pakistan maintains two long-term LNG agreements with Qatar: a 15-year contract expiring in January 2031 with a Brent slope of 13.37%, and a 10-year contract running through December 2032 at a Brent slope of 10.2%.

Under normal conditions, Pakistan imports around 9-10 LNG cargoes a month from Qatar under these arrangements.

The country had briefly cancelled a similar emergency tender in May, after seven bids were received for two spot cargoes, on expectations that contractual Qatari inflows would resume steadily.

That reprieve, however, has proven short-lived amid the latest round of Hormuz hostilities.

Copyright Mettis Link News