ISLAMABAD: Pakistan has moved to urgently secure liquefied natural gas (LNG) supplies after a prolonged gap of more than two years, as a worsening energy shortfall and regional geopolitical disruptions place the country’s power system under severe strain.
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State-run Pakistan LNG Limited (PLL) on Thursday issued emergency tenders for the import of three LNG cargoes, marking its first such move in 28 months. The tenders seek delivery between April 27 and May 8, with bids due on April 24 and to be opened the same day, underscoring the urgency of the situation.
The decision comes as electricity demand surges with rising temperatures, while supply continues to lag. Officials report a shortfall exceeding 4,500 megawatts during peak hours, resulting in widespread load-shedding lasting up to seven hours in several parts of the country.
The supply crunch has been exacerbated by the ongoing closure of the Strait of Hormuz, a critical global energy corridor through which a significant portion of the world’s oil and gas shipments pass. Escalating tensions in the region have disrupted maritime traffic, prompting Qatar — one of Pakistan’s key LNG suppliers — to hold back shipments due to security concerns.
Three LNG cargoes originally destined for Pakistan were forced to turn back from the Gulf earlier this month, compounding the country’s fuel shortages.
Each of the newly tendered cargoes will carry approximately 140,000 cubic metres of LNG and will be delivered on a delivered ex-ship (DES) basis. Once regasified, each shipment is expected to contribute around 100 million cubic feet per day (mmcfd) to Pakistan’s energy supply.
The crisis has also driven up costs. The Oil and Gas Regulatory Authority (Ogra) recently approved a 19–22% increase in the price of regasified LNG (RLNG), pushing rates to between $12.50 and $14 per mmBtu. The increase reflects reduced import volumes, higher terminal charges, and volatility in global energy markets.
In March, Pakistan managed to import only two LNG cargoes, a sharp decline from the usual eight cargoes per month. The drop followed a force majeure declaration by Qatar after attacks on its gas infrastructure and continued instability in the Gulf region.
The Power Division of Pakistan has warned that the situation could deteriorate further as summer demand peaks. It has formally requested the Petroleum Division to arrange at least 400 mmcfd of LNG to maintain electricity generation and prevent a collapse of the national grid.
Officials caution that without sufficient LNG supplies, power producers may be forced to switch to alternative fuels such as high-speed diesel (HSD) and furnace oil — options that are significantly more expensive and economically unsustainable.
Generation costs using HSD are estimated to exceed Rs80 per unit under current market conditions, compared to much lower costs for LNG-based generation. The shift could sharply increase electricity tariffs for consumers and place additional pressure on the economy.
Pakistan’s LNG-based power plants, particularly those located in Punjab with a combined capacity of around 6,000 megawatts, play a vital role in ensuring grid stability. These plants are also essential for balancing electricity flows across the national transmission network, especially as solar generation fluctuates between day and night.
The government has warned that continued disruptions in LNG supply could lead to prolonged load management, higher fuel cost adjustments, and increased reliance on expensive backup fuels. This, in turn, may further dampen economic activity already under pressure from inflation and external shocks.
As Pakistan navigates the dual challenge of domestic energy demand and external supply constraints, the success of these emergency LNG tenders will be critical in determining whether the country can stabilise its power sector in the coming weeks.
