State-owned Pakistan LNG Limited (PLL) has issued a tender to purchase two LNG cargoes from international suppliers for delivery in mid-December and early January, Business Recorder reports, citing a tender notice.
Winning bidders in the tender are expected to deliver the LNG cargoes on a delivered ex-ship (DES) basis at Port Qasim, one in the December 14-16 window, and the other between January 9 and 11, 2027.
The new tender is a re-issue of a previous one, in which Pakistan had rejected bids from two suppliers, who had quoted prices of between $27 and $31 per million British thermal units (MMBtu).
Pakistan, which relied mostly on Qatari term LNG supply before the Iran war, has had to turn to expensive spot purchases, which have pushed its power generation costs higher.
Some, but surely not all, LNG cargoes from Qatar have reached Pakistan in recent months following direct assurances from Iran to Pakistan that it would be safe for the vessels to transit the Strait of Hormuz.
Term supplies from Qatar are cheaper than the spot LNG cargoes, for which Asian and European buyers compete ahead of the winter, driving up prices.
Pakistan has been struggling to keep the lights on after Qatar in March declared force majeure on its exports following Iranian strikes that caused damage to its Ras Laffan LNG export hub. Since then, Pakistan has been forced to turn to spot LNG markets and pay hefty premiums for the occasional shipment.
Pakistan will have to pay in excess of $1 billion to secure LNG for the winter months, as spot prices soar amid massive disruptions to Qatari term supply.
With supplies from Qatar disrupted, Pakistan will have to purchase an additional 10 cargoes on the spot market for deliveries between November 2026 and February 2027, at double the price at which LNG is being imported from Qatar, to ensure gas volumes for the winter.
By Tsvetana Paraskova for Oilprice.com
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