Pakistan LNG Limited (PLL) launched a fresh tender on August 31 to procure one spot LNG cargo for delivery between September 4 and 8. The state-owned company issued the tender as global supply disruptions from the Middle East war continue to squeeze Pakistan's gas-fired power generation.
Why is Pakistan seeking a spot LNG cargo?
Pakistan called the tender after a drop in electricity generation caused by delayed LNG cargoes and a shortage of regasified natural gas. The country's Power Division said generation was disrupted overnight due to the unavailability of RLNG, and supply is expected to recover once delayed cargoes arrive at port.
PLL invited bids from international suppliers for one LNG cargo of 140,000 cubic meters, delivered ex-ship at Port Qasim. Bids will close and open on September 1, according to the notification posted on PLL's website.
How much power generation has the shortage affected?
The disruption affected around 3,600 MW of generation capacity, according to a Power Division spokesperson. Generation from the Mangla hydropower complex was also lower by about 195 MW, adding further strain to supply. The Power Division said temporary load management during nighttime hours would ease once delayed RLNG cargoes arrive and gas-fired plants receive adequate fuel.
How dependent has Pakistan become on spot LNG cargoes?
Pakistan received 15 LNG cargoes between March and July this year, a period marked by regional disruptions, and seven of these were procured on a spot basis. That compares with nearly 56 cargoes received under long-term contracts with Qatar over the same period a year earlier, according to OGRA and AKD Securities data.
Pakistan holds two LNG supply agreements with Qatar. One runs for 15 years at 13.37% of Brent, while the other spans 10 years at 10.2% of Brent. The sharp fall in contractual LNG availability has pushed Pakistan toward greater reliance on spot cargoes, exposing the power sector to more volatile international prices.
How much did Pakistan's LNG imports fall last year?
Pakistan's LNG imports fell sharply in the fiscal year ended June 30, with the country receiving 82 cargoes, down 30% from 117 a year earlier, according to OGRA and AKD Securities data released on July 22. Muhammed Awais Ashraf, director of research at AKD Securities, said this marked the lowest annual LNG arrivals since Pakistan began importing the fuel in 2017, when it received 33 cargoes.
The country's LNG import bill also fell by 36% to USD 2.221 billion from USD 3.476 billion a year earlier, according to Pakistan Bureau of Statistics data released on July 21.
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