Pakistan seeks sixth spot LNG cargo as Qatar supply disruptions persist

Pakistan LNG Ltd. (PLL) has invited bids for the purchase of a 140,000-cubic-meter spot liquefied natural gas (LNG) cargo for delivery on July 21-22, according to a tender published on the state-owned company's website.

The tender marks Pakistan's sixth spot LNG procurement since late February as the country continues to rely on the spot market following disruptions to supplies under its long-term contract with QatarEnergy.

According to the tender, internationally reputed LNG suppliers have been invited to submit bids by 2 p.m. local time on July 15. The bids will be opened at 2:30 p.m., and the successful bidder is expected to be announced by 10 p.m. the same day under Pakistan's amended Public Procurement Regulatory Authority (PPRA) rules.

Pakistan has increasingly turned to spot cargoes after disruptions to contracted LNG supplies from QatarEnergy earlier this year. The disruptions followed force majeure declarations amid heightened geopolitical tensions in the Middle East, including concerns over shipping through the Strait of Hormuz.

The July 21-22 cargo will follow another spot shipment scheduled for delivery on July 15-16, which was awarded to BP Singapore at USD 18.2345 per MMBtu.

Pakistan has purchased three spot LNG cargoes in July alone. The first, supplied by BP Singapore, was procured at USD 16.7372 per MMBtu, followed by a cargo awarded to TotalEnergies at USD 17.37 per MMBtu that arrived on July 11.

Including the latest tender, Pakistan has sought six spot LNG cargoes since the supply disruptions began while continuing to receive long-term government-to-government shipments from QatarEnergy as available.

Under its long-term agreement with QatarEnergy, LNG supplies are priced at 13.37% of Brent crude, well below prevailing spot market prices, highlighting the additional costs Pakistan has incurred to secure supplies during the disruption.

The latest procurement comes as Pakistan seeks to ensure adequate LNG supplies to meet seasonal demand despite ongoing uncertainty surrounding regional energy markets.