Pakistan Seeks LNG Amidst War-Induced Shortfalls

Pakistan LNG Limited has released its first spot tender for liquefied natural gas (LNG) since December 2023. This move comes amid significant supply shortfalls, a direct consequence of the ongoing U.S.-Israeli war on Iran.

The company's tender seeks bids from international suppliers for three LNG cargoes, each approximately 140,000 cubic metres. These shipments are scheduled for delivery between April 27-30, and May 1-7 and 8-14 at Port Qasim in Karachi. Since the onset of the conflict on February 28, Pakistan has not received any LNG shipments as Iran has shut off nearly all shipping through the critical Strait of Hormuz.

Qatar, which relies on the Strait of Hormuz to transport its energy products, previously supplied the majority of Pakistan's LNG imports. Meanwhile, Azerbaijan's state energy company, SOCAR, has expressed readiness to supply LNG to Pakistan, pending a request from Islamabad. The blockade of the Strait of Hormuz has significantly affected global LNG flows, previously accounting for 20% of the market, leading to increased Asian spot prices and supply uncertainty.