KARACHI: Pakistan’s state-owned LNG importer has invited international suppliers to bid on two more cargoes of liquefied natural gas as the country braces for winter shortages caused by the war involving Iran and disruption in the Strait of Hormuz.
Pakistan LNG Limited (PLL) issued a tender notice Thursday seeking two cargoes on a delivered ex-ship basis at Port Qasim in Karachi. The first is due Dec. 14-16, 2026, and the second Jan. 9-11, 2027. PLL, owned by the government, is mandated to procure LNG to meet the country’s gas requirements.
The new tender follows PLL’s decision to reject spot offers for the same two delivery windows earlier this week. On Tuesday, PLL received two bids for the December cargo: TotalEnergies Gas & Power Ltd. offered $27.30 per million British thermal units (MMBtu), and Qatar Energy Trading LLC offered $31 per MMBtu. TotalEnergies was declared the lowest evaluated bidder.
For the January window, TotalEnergies quoted 24.28 billion rupees, or $27.10 per MMBtu, and was again the lowest evaluated bidder. PLL declined both offers.
Pakistan has also been trying to secure discounted LNG from Qatar under its existing long-term contracts as winter demand approaches and Hormuz disruptions threaten global energy supply chains.
Heavy reliance on the Gulf
Pakistan is among the Asian countries most exposed to the disruption. A Gastech report found that Qatar and the UAE together supply about 99 percent of the country’s LNG. The Strait of Hormuz carries about 20 percent of global LNG transit, and 90 percent of the LNG exported through it in 2025 went to Asian markets.
One analysis said the strait and Qatar’s Ras Laffan export facility had been effectively shut for more than five months because of the war between the United States and Iran. In September, QatarEnergy notified Pakistan and Bangladesh that LNG shipment cancellations would run through November, as disruptions continued to hamper flows through the strait.
Winter demand
Demand rises sharply in the cold months. Last winter, Pakistan imported 36 LNG cargoes, 35 of them from Qatar, according to official data. An official estimated the country would need three or four cargoes in November, seven or eight in December and 10 or 11 in January.
The head of PLL has warned of a difficult winter. With Qatari and UAE flows severely disrupted, he said Pakistan would have to buy an additional 10 cargoes on the spot market for delivery between November 2026 and February 2027, at double the price of its imports from Qatar. Some Qatari cargoes have reached Pakistan in recent months after Iran gave direct assurances that vessels could transit the strait safely.
Prices and security risks
Spot purchases have been costly. Pakistan paid $21.88 per MMBtu for a cargo in July, its highest price since the Iran war began. The bids received this week were well above that level.
Security risks remain. The Marshall Islands-flagged tanker Al Mayeda, carrying Qatari LNG to Pakistan, was attacked near the strait on Oct. 30, even though Pakistan had negotiated safe passage for the ship with Iran, according to Bloomberg. Qatar condemned the attack, and authorities said they were investigating.
The government is also using diplomatic channels with Qatar, Iran and the United States to help Qatari cargoes under the long-term agreement pass through the strait.
