ISLAMABAD: Pakistan has booked a liquefied natural gas (LNG) cargo from French multinational firm TotalEnergies at $18.4 per million British thermal units (mmBtu) that will plug a looming supply shortfall for a month, a petroleum ministry official said on Monday.
Global oil and gas supplies have been disrupted since last month after the United States and Israel launched a war on Iran, slowing shipping through the Strait of Hormuz waterway.
The state-run Pakistan LNG Limited (PLL) floated the tender on April 24 and received four bids, marking the country’s return to the LNG spot market after more than two years. Pakistan has not received any LNG shipments since Feb. 28 when the conflict began.
The cargo, due between April 27 and 30, is expected to supply about 100 million cubic feet per day (mmcfd) for roughly a month, offering some breathing space to an already stretched power system.
“TotalEnergies initially offered $18.88/MMBtu for the late-April window but revised its bid downward to secure the contract,” the petroleum ministry official, who requested anonymity, told Arab News.
Pakistan requires at least 400 mmcfd of LNG per month, according to officials. The country has faced up to seven hours of power outages, following the war on Iran.
Even though cheaper offers were available for May deliveries, the government chose to go ahead with just one cargo, keeping its exposure to volatile spot prices in check, the official said.
According to documents, Vitol Bahrain had offered $18.54/MMBtu for May 1–7, while OQ Trading quoted $17.997/MMBtu for May 8–14, both of which were passed over.
Officials in the petroleum and power divisions say the additional supply should help ease power outages in the short term.
“We hope the loadshedding will ease once the cargo arrives at the LNG terminal,” a power division official said.
The purchase reflects a shift from last year’s relative surplus to a tightening supply situation, driven by rising electricity demand and constrained imports.
Qatar, Pakistan’s main LNG supplier accounting for most of the 6.64 million metric tons imported last year, also relies heavily on the Strait of Hormuz, highlighting the fragility of Islamabad’s supply line.
Iran’s blockade of the Strait of Hormuz, which typically handled 20 percent of global LNG flows before the war, pushed Asian spot prices to three-year highs, though they have pulled back recently.
They were last at $16.05 per mmBtu, a 54 percent increase since February 23.
Officials say buying just one cargo is unlikely to have a major impact on fuel costs or consumer tariffs, while it will still provide immediate relief to the power sector.
