Pakistan LNG Limited issued a fresh tender on Saturday for two spot LNG cargoes of 140,000 cubic meters each, two days after cancelling a previous tender.
The move comes as uncertainty persists over contracted Qatari supplies due to vessel movement restrictions at the Strait of Hormuz, forcing Pakistan to return to the more expensive spot market.
Why is Pakistan buying spot LNG cargoes?
At least two LNG cargoes from Qatar have been loaded but remain stranded near the Strait of Hormuz due to shipping restrictions linked to the war in Iran.
Officials had hoped that diplomatic progress would ease supply constraints and allow contracted shipments to resume. With uncertainty continuing, the government has returned to the spot market to secure emergency supplies for power generation and industry.
Pakistan's gas demand has surged due to rising electricity consumption during the peak summer season.
Power Minister Awais Leghari recently said five LNG-based power plants were shut down, causing a 3,400-megawatt electricity shortfall. According to official data for March, Pakistan generated 17% of its electricity from gas, including 6% from imported LNG.
What are the details of Pakistan's latest LNG tender?
The two cargoes are required for delivery during May 12-16 and May 24-28. Bids must be submitted by May 11.
The cargoes are expected to supply nearly 100 million standard cubic feet per day of gas to the national grid.
Why were Pakistan's earlier LNG bids rejected?
The government's handling of the previous tender has drawn criticism after several lower-priced bids were turned down.
In the second tender process, the two lowest bids, submitted by BP Singapore Pte Limited at $17.28 per MMBtu and TotalEnergies Gas and Power Limited at $16.98 per MMBtu, were rejected.
Other bids received included SOCAR Trading at $17.21; PetroChina International Singapore at $17.69 and $17.49 for the two cargoes, respectively; Vitol Bahrain at $17.84; and OQ Trading at $18.58 per MMBtu.
An energy ministry official said the earlier bids were rejected after authorities assessed that diplomatic progress in the region could ease supply constraints and bring down spot prices.
Market observers described the approach as indecisive, given that Pakistan later returned to the spot market regardless.
How much LNG does Pakistan need in the coming months?
Energy ministry officials expect LNG demand to rise further as electricity generation requirements increase through the summer.
The official said Pakistan would likely require four to five LNG cargoes next month and a similar number every month through August.
Power generation alone demands four to five cargoes per month, while industry requires an additional two cargoes per month.
Pakistan's LNG imports have already fallen sharply due to regional instability.
The country imported LNG worth $70.2 million in March, down 69% from $226 million in the same month last year, according to the Pakistan Bureau of Statistics.
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