Pakistan receives three LNG spot bids amid supply disruptions

April 25, 2026 (MLN): Pakistan has attracted three bids from international suppliers for spot liquefied natural gas (LNG) cargoes, its first such tender in over two years, as supply disruptions linked to the Middle East conflict strain the country’s energy chain.

Documents issued by Pakistan LNG Ltd. (PLL) show the state-owned buyer sought offers on April 24 for three shipments to cover short-term demand gaps after scheduled deliveries were affected. 

The move highlights Islamabad’s renewed reliance on the spot market following a period of relative stability under long-term contracts.

Among the offers received, TotalEnergies Gas & Power Ltd. quoted $18.88 per million British thermal units (mmBtu) for a 140,000-cubic-meter cargo slated for delivery between April 27 and April 30. 

Vitol Bahrain proposed $18.54 per mmBtu for a second shipment due May 1–7. 

A third bid, priced at $17.997 per mmBtu for delivery between May 8 and May 14, was also submitted, although the supplier’s name was not disclosed.

The tender comes against the backdrop of a sharp drop in LNG inflows. 

Data released on April 16 by the Pakistan Bureau of Statistics showed imports fell to $70 million in March, compared with $189 million in February and $226 million in the same month last year. 

Cumulatively, LNG imports for the nine months ending March 31 declined to $1.884 billion, down from $2.682 billion a year earlier.

Supply reliability has also deteriorated. Petroleum ministry officials told the Senate that only two of eight scheduled LNG cargoes arrived on time in March, while the status of six cargoes expected in April remains uncertain due to shipping disruptions tied to regional tensions, said a press release issued.

Pakistan typically relies on long-term LNG supply agreements with Qatar, importing around nine to ten cargoes each month. 

These include a 15-year contract running until January 2031 with a Brent slope of 13.37% and another 10-year deal extending to December 2032 at a slope of 10.2%.

The shortfall has weighed on electricity generation from regasified LNG, which dropped to 504 gigawatt-hours in March from 1,528 GWh a year earlier, according to figures from the National Electric Power Regulatory Authority and Arif Habib Ltd.

Even so, LNG remains a cheaper fuel option compared to alternatives. Power generated from fuel oil cost Rs36.16 per unit in March, versus Rs24.56 per unit from regasified LNG, based on regulator data.

With supply uncertainties persisting and demand pressures building, Pakistan’s re-entry into the spot LNG market highlights the growing challenge of balancing energy security with rising costs. 

The government’s next steps on these bids will be crucial in determining whether it can stabilize fuel supplies in the short term without significantly increasing the financial burden on the energy sector.

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