- Only one bid received for latest PLL spot tender.
- QatarEnergy force majeure extended until at least August 2026.
- Pakistan has imported 12 LNG cargoes in current supply period.
ISLAMABAD: Pakistan has purchased its seventh spot LNG cargo since QatarEnergy declared force majeure in March, paying $21.88 per MMBtu — the highest price since March 2026 — as prolonged supply disruptions linked to Strait of Hormuz tensions continue to force the country into the costly spot market, The Newsreported.
PLL received only one bid for the tender, submitted by TotalEnergies Gas and Power Limited. The bid, priced at $21.88 per MMBtu, was found to be technically and commercially compliant and was subsequently accepted.
On July 17, 2026, PLL had invited bids from international LNG suppliers for one spot cargo of 140,000 cubic metres (m³) for delivery during the July 27–28 window. The procurement marks Pakistan’s seventh spot LNG cargo purchase since QatarEnergy declared force majeure earlier this year, highlighting the country’s growing reliance on costly spot market imports amid prolonged disruptions in supplies under its long-term contract.
With the latest award, TotalEnergies will supply Pakistan’s seventh spot LNG cargo since March 2026. The procurement comes as the country continues to face supply shortages following QatarEnergy’s force majeure declaration on March 4, 2026, after an attack on its flagship Ras Laffan LNG production complex.
The disruption, linked to heightened tensions in the Strait of Hormuz, has since been extended until August, forcing Pakistan to procure spot LNG cargoes almost weekly to meet domestic gas demand.
Earlier this month, Pakistan awarded another spot LNG cargo to PetroChina International. On July 15, PLL awarded the company a cargo for delivery on July 21–22 at $20.6999 per MMBtu, which was the highest price Pakistan had paid for a spot LNG cargo since returning to the spot market following the regional conflict triggered by the US and Israeli strikes on Iran on February 28, 2026.
The latest purchase further underscores Pakistan’s increasing dependence on the spot LNG market after repeated disruptions to supplies under its long-term agreement with QatarEnergy.
The supplier cited regional instability when declaring force majeure on March 4 and has since extended the declaration, affecting contracted LNG deliveries to Pakistan through at least August.
The prolonged disruption has been attributed to escalating tensions in the Strait of Hormuz and the broader regional conflict, leaving Pakistan with little option but to procure expensive spot LNG cargoes to maintain gas supplies for power generation and industrial consumers.
With the arrival of the latest cargo on July 27–28, Pakistan will have imported 12 LNG cargoes during the current supply period. These include seven spot cargoes procured through international competitive bidding and five government-to-government cargoes supplied by QatarEnergy under the long-term contract.
The shift towards spot procurement has significantly increased the country’s LNG import bill, as spot prices remain well above those under long-term agreements. Despite the higher financial burden, energy sector officials say the government has continued purchasing spot cargoes to prevent disruptions in gas supplies to power plants and industrial consumers.
The costly LNG imports are also expected to raise electricity generation costs. Officials said LNG-based power generation currently costs around Rs35.5 per unit. During June 2026, LNG-fired power plants generated 1,480 GWh, accounting for 11.02% of Pakistan’s total electricity generation.
As a result, sustained reliance on high-priced spot LNG is likely to increase the country’s base electricity tariff in the coming months.
2026-07-21 10:02:00
