Pakistan taps spot market for LNG

July 01, 2026 (MLN): Pakistan turned to the costlier LNG spot market this week, purchasing a single cargo as renewed tensions in the Strait of Hormuz raised concerns over the country's energy supply security, an official tender document showed.

An energy ministry official told Arab News that the spot purchase came after fresh US-Iran hostilities reignited fears over the key maritime route, despite a Pakistan-brokered peace agreement signed earlier this month.

BP Singapore Pte Limited emerged as the sole bidder for the tender floated by state-run Pakistan LNG Limited (PLL) on Monday, offering to supply 140,000 million cubic feet of LNG at $16.7372 per MMBtu on a Delivered Ex-Ship basis at Port Qasim, Karachi.

The company is required to deliver the cargo between June 30 and July 4, with the fuel needed to keep five power plants operational in the coming weeks.

The official said Pakistan lacks access to Qatari LNG at present, as QatarEnergy declared force majeure in March following Iranian attacks on two of its major facilities, halting production.

He said the force majeure remains in effect until mid-July and has not been withdrawn, leaving PLL reliant on spot purchases in the interim.

Pakistan's regular LNG suppliers include BP Singapore Pte, TotalEnergies Gas & Power, Vitol Bahrain, OQ Trading, SOCAR Trading and PetroChina International Singapore.

The country has repeatedly floated and scrapped spot tenders in recent months depending on the access Iran permits for Pakistan-flagged vessels through the strait.

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