Pakistan LNG seeks three spot LNG cargoes in first tender since December 2023

SINGAPORE/ISLAMABAD: Pakistan LNG Limited has issued its first spot tender for liquefied natural gas (LNG) since December 2023 amid supply shortfalls triggered by the U.S.-Israeli war on Iran.

The company is seeking bids from international suppliers for three LNG cargoes of around 140,000 cubic ‌metres each ⁠for delivery on ⁠April 27-30, and on May 1-7 and 8-14 at Port Qasim in ​Karachi, according to a tender advertisement on Thursday.

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Pakistan has not received ​any LNG cargoes loaded after the war began on February 28 and Iran subsequently shut off almost all shipping through the ​Strait of Hormuz that connects the ⁠Gulf to the ‌Indian Ocean.

Qatar, which depends on access ​through Hormuz ​to move its energy output, supplied the bulk ⁠of the 6.64 million metric tons of LNG that ​Pakistan imported last year, according to Kpler data.

Azerbaijan's ​state energy company SOCAR said on Tuesday it is ready to supply LNG to Pakistan as soon as it receives a request from Islamabad, as a framework agreement signed in 2025 between SOCAR Trading and Pakistan LNG allows the ‌South Asian buyer to purchase cargoes directly under an accelerated procedure.

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Iran's blockade of the Strait of Hormuz, which ​typically handled 20% ​of global LNG ⁠flows before the war, pushed Asian spot prices to three-year highs, though they have pulled back some recently. They were last at $16.05 ​per million British thermal units (mmBtu), a 54% increase since February 23.

Analysts have slashed global LNG supply outlooks, and expect high prices and the supply shortage to cause demand destruction across Asia.