Pakistan has been forced into a high-cost liquefied natural gas (LNG) purchase after disruptions linked to the Strait of Hormuz tightened global supply routes. State-run Pakistan LNG Limited approved a revised bid of $18.4 per mmBtu from TotalEnergies for delivery between April 27 and 30.
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The deal comes after multiple bids ranging between $17.997 and $18.88 per mmBtu were reviewed, with authorities rejecting other offers for early May deliveries in anticipation of improved supply conditions. Officials said the urgent procurement was necessary to address rising electricity demand and a widening power shortfall.
The tender was issued as Pakistan faced a deficit of more than 4,500 megawatts during peak hours, leading to prolonged load-shedding in several areas. The situation has been exacerbated by delays in LNG shipments, particularly from Qatar, after vessels were unable to pass through the Strait of Hormuz due to security concerns.
With additional taxes and charges, the cost of regasified LNG is expected to reach around $23 per mmBtu, nearly double the rate recorded just a month earlier. This sharp increase reflects both global market volatility and reduced import volumes.
The Oil and Gas Regulatory Authority had already notified a significant rise in RLNG prices for March, driven by higher terminal costs and fewer cargo arrivals. Analysts warn that continued disruptions could push energy prices even higher in the coming weeks.
Pakistan typically relies on imported LNG to meet peak summer demand, which often exceeds 28,000MW. While solar energy has eased daytime pressure, demand surges after sunset continue to strain the grid.
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The latest development underscores the country’s vulnerability to global energy supply shocks and highlights the challenges of maintaining stable power generation amid geopolitical uncertainties.