Pakistan is scrambling to secure liquefied natural gas (LNG) as a winter gas crisis deepens, with state-owned Pakistan LNG Limited (PLL) issuing a new tender for two LNG cargoes. The deliveries are scheduled for mid-December and early January 2027, following the rejection of previous bids that quoted prices between $27 and $31 per million British thermal units (MMBtu).
The tender re-issue comes as Pakistan faces higher power generation costs due to reliance on expensive spot purchases, a shift necessitated by disruptions in term supplies from Qatar. The Iran war has forced Pakistan to seek alternative suppliers, with some Qatari cargoes still reaching the country after assurances from Iran regarding safe transit through the Strait of Hormuz.
Since Qatar declared force majeure on its exports in March following Iranian strikes, Pakistan has had to turn to the spot LNG market, paying hefty premiums for shipments. The country will spend over $1 billion to secure LNG for the winter months, with spot prices soaring due to disruptions in Qatari term supply. Additionally, Pakistan will need to purchase an extra 10 cargoes on the spot market between November 2026 and February 2027, at double the price of Qatari imports.
The crisis highlights the vulnerability of Pakistan's energy sector to geopolitical tensions, as it struggles to maintain stable gas supplies amid rising costs and supply chain disruptions.