Key Takeaways
- Pakistan is seeking an urgent liquefied natural gas (LNG) cargo due to disruptions in Qatar supplies.
- The government approved a tender for an LNG cargo delivery on July 15-16, with bids due by Friday.
- The disruption follows renewed hostilities in the Strait of Hormuz and US strikes against Iran.
Pakistan is urgently seeking to secure a liquefied natural gas (LNG) cargo after renewed hostilities in the Strait of Hormuz disrupted supplies from Qatar, forcing the country back into the costly spot market. State-owned Pakistan LNG Ltd (PLL) has issued a tender for an LNG cargo delivery on July 15-16, with bids due by Friday, according to a notice published on the company’s website.
The government approved the tender on Wednesday after a Qatari LNG shipment scheduled for this month was canceled. Traders familiar with the matter told Bloomberg that the cancellation was due to ongoing conflicts in the region, which have slowed maritime traffic through the Strait of Hormuz. A vessel carrying a Qatari LNG cargo destined for Pakistan also abandoned its voyage earlier this week.
The disruption comes as maritime traffic through the Strait of Hormuz has slowed sharply following an escalation in the Iran-US conflict. The US conducted fresh strikes on Iran after Tehran reportedly attacked vessels in the strategic waterway, including an LNG tanker. A vessel carrying a Qatari cargo also abandoned its voyage earlier this week.
On Wednesday, the US military said it had launched additional strikes on Iran aimed at preserving freedom of navigation in the Strait of Hormuz, prompting Iranian retaliatory attacks on Kuwait and Bahrain. The latest escalation followed Tuesday’s reported assault on three cargo ships transiting the strait and came hours after US President Donald Trump declared that an interim ceasefire with Iran was “over.”
Pakistan relies heavily on Qatar for its LNG needs, with nearly all imports sourced under long-term contracts last year. However, the ongoing disruption has strained supplies, forcing Islamabad to turn to the spot market to avoid gas shortages. Earlier, Business Recorder reported that Pakistan had purchased an LNG cargo for July 10-11 delivery from TotalEnergies SE at $17.37 per million British thermal units (mmBtu), nearly double the price under its long-term Qatari contracts.
The cargo was awarded through a tender that closed last Friday, highlighting the rising cost of securing emergency fuel supplies amid continued uncertainty in the Gulf. The government’s move to seek an urgent LNG cargo underscores the critical importance of reliable energy sources for Pakistan and the challenges posed by regional tensions.
