Pakistan seeks emergency LNG supply after Qatari shipment 'aborted'

Pakistan seeks emergency LNG supply after Qatari shipment 'aborted'
Updated on

Summary Pakistan has issued an emergency LNG tender after a Qatari shipment was cancelled amid Strait of Hormuz tensions, as authorities move to secure uninterrupted gas supplies.

ISLAMABAD (Web Desk) – The federal government has issued an emergency tender to procure a liquefied natural gas (LNG) cargo for delivery on July 15-16 after a scheduled shipment from Qatar was cancelled due to renewed tensions in the Strait of Hormuz, according to a Bloomberg report.

The emergency tender was floated by state-owned Pakistan LNG Limited (PLL) after receiving government approval on Wednesday. The move followed the cancellation of a Qatari LNG cargo that was expected to arrive in Pakistan later this month, traders familiar with the matter told Bloomberg.

The disruption comes as shipping activity through the Strait of Hormuz has been severely affected by escalating regional tensions, including recent military exchanges involving the United States and Iran. Reports said a vessel carrying an LNG cargo from Qatar to Pakistan turned back before completing its passage through the strategic waterway.

Oil rises more than a dollar per barrel as US launches fresh strikes against Iran

Earlier, Pakistan secured an LNG cargo from TotalEnergies SE for delivery on July 10-11 at a price of $17.37 per million British thermal units (MMBtu). It marked the country's second spot-market LNG purchase within two weeks as authorities sought to replace delayed Qatari supplies.

Pakistan imports the vast majority of its LNG under long-term agreements with Qatar, making the country highly dependent on uninterrupted shipments. Supply disruptions linked to the regional conflict have forced Islamabad to rely on more expensive spot-market purchases to avoid potential gas shortages.

Officials have maintained that ensuring adequate fuel supplies remains a key government priority. The National Crisis Management Cell (NCMC) has continued to monitor developments in regional energy markets and coordinate timely procurement decisions to minimise the risk of supply disruptions.

Pakistan's LNG procurement strategy has remained under close scrutiny since concerns emerged over operations at Qatar's Ras Laffan LNG facilities, which heightened uncertainty across global energy markets. The reported declaration of force majeure by QatarEnergy also prompted several LNG-importing countries to explore alternative sources of supply.

 

Browse Topics