Lead

Pakistan LNG Limited (PLL) has issued its first spot tender for liquefied natural gas (LNG) since December 2023, according to an advertisement published on Thursday. The tender seeks bids from international suppliers for three LNG cargoes, each of around 140,000 cubic metres, for delivery at Port Qasim in Karachi between April 27 and May 8. The tender closes on April 24.

Power Minister Awais Leghari told Reuters that the LNG tender was aimed at meeting rising power demand and reducing reliance on costlier diesel and furnace oil. He also indicated uncertainty about when Pakistan would receive additional cargoes from Qatar.

The tender follows a period of power outages that affected consumers across the country earlier this month.

Coverage Comparison

Multiple reports from Dawn, Pakistan's leading English-language daily, all sourced from Reuters and official statements, provide a consistent picture of Pakistan's efforts to secure LNG supplies amid supply disruptions. The reports differ in focus: one highlights the end of loadshedding after an LNG shipment arrived, another details the new tender, a third covers Azerbaijan's SOCAR offering to supply LNG, and a fourth discusses Pakistan's broader strategy, including possible spot purchases and domestic production.

All reports attribute the supply disruptions to the US-Iran conflict, with one noting that Iran shut off almost all shipping through the Strait of Hormuz after the conflict began on February 28. That report also states that Qatar declared force majeure on its global LNG contracts, including those with Pakistan, last month.

Key Claims

  • Power Minister Awais Leghari declared the end of a month-long loadshedding period on Friday, after an LNG shipment arrived in Pakistan a day earlier. He stated in a recorded televised message that the recent outages were caused by a gas shortage linked to the US-Iran war, not "incompetence or system failure." (Reported by multiple Dawn articles)
  • Pakistan LNG Limited issued its first spot tender for LNG since December 2023, according to an advertisement published on Thursday. The tender seeks three cargoes for delivery between April 27 and May 8. (Reported by Dawn, citing the advertisement)
  • The government used fuel-based plants to stabilize supply due to the unavailability of LNG, and used furnace oil selectively to limit loadshedding to 2-2.5 hours, according to the power minister. (Reported by multiple Dawn articles)
  • Pakistan has not received any LNG cargoes loaded after the Middle East war began, as reported by Dawn. The report cites Iran's shutdown of almost all shipping through the Strait of Hormuz, which began on February 28, and notes that Qatar declared force majeure on its global LNG contracts, including those with Pakistan.
  • Azerbaijan's state energy company SOCAR is ready to supply LNG to Pakistan as soon as it receives a request, as stated by SOCAR to Reuters. This is based on a framework agreement signed in 2025.
  • Pakistan is considering buying LNG on the spot market to offset supply disruptions, but would prefer government-to-government deals to avoid steep premiums, according to Petroleum Minister Ali Pervaiz Malik, speaking to Reuters.
  • Pakistan has begun commercial output from its highest-ever producing oil and gas well, the Baragzai X-01 in Khyber Pakhtunkhwa, according to state-run operator OGDC.

Perspectives

Government Perspective

Pakistani officials, including Power Minister Awais Leghari and Petroleum Minister Ali Pervaiz Malik, emphasize that the outages were caused by external factors—the US-Iran war and consequent supply disruptions—not domestic mismanagement. They highlight the government's efforts to mitigate the impact, such as using fuel-based plants, securing spot cargoes, and pursuing alternative supplies like from SOCAR.

Industry/Geopolitical Perspective

Reports note that Pakistan's reliance on LNG, particularly from Qatar, leaves it vulnerable to supply shocks. Qatar's force majeure and the Strait of Hormuz closure have exposed these vulnerabilities. Officials have stated that Pakistan is not sure when it will get more cargoes from Qatar, and have engaged with SOCAR under an existing framework agreement.

Consumer/Impact Perspective

The reports document the impact on consumers, with outages lasting up to seven hours in mid-April. The government's selective use of furnace oil was intended to avoid additional financial burden, but Petroleum Minister Malik warned that prolonged shortages could threaten food security. He also noted that spot LNG cargoes have surged to $20 to $30 per mmBtu amid the conflict.