The federal government has issued an emergency tender to procure a liquefied natural gas (LNG) cargo for delivery on July 15-16 after a Qatari shipment bound for Pakistan was aborted mid-journey due to fresh hostilities in the Strait of Hormuz, Bloomberg reported.
State-owned Pakistan LNG issued the emergency tender after the government approved it on Wednesday, following the cancellation of a Qatari cargo scheduled for delivery this month, Bloomberg reported citing traders familiar with the matter.
Traffic through the Strait of Hormuz has come to a near standstill after the United States carried out strikes on Iran for a second consecutive day, following Iranian attacks on vessels in the waterway that included an LNG tanker.
A ship carrying a Qatari cargo bound for Pakistan turned back earlier this week without completing its transit through the strait.
Earlier this week, Bloomberg reported that Pakistan had already purchased an LNG cargo from TotalEnergies SE for delivery on July 10-11 at $17.37 per million British thermal units – its second spot market procurement in two weeks – as Islamabad scrambled to replace cancelled Qatari supplies stranded in the Persian Gulf.
Pakistan relies on Qatar for nearly all of its LNG supplies under long-term contracts, leaving the country increasingly vulnerable to energy shortages since the Middle East conflict erupted in late February.
Islamabad has already been compelled to procure two shipments from the costly spot market over the past few weeks to avert a gas shortfall, the US media outlet reported.
Government officials have emphasised ensuring adequate fuel inventories remains a top priority. The National Crisis Management Cell (NCMC), established to coordinate responses to national challenges including fuel supply disruptions, has reportedly remained engaged in monitoring energy markets and facilitating timely procurement decisions whenever risks to fuel availability emerge.
Pakistan’s LNG procurement strategy has drawn increased attention since March when reports emerged LNG facilities at Ras Laffan LNG Facilities, operated by QatarEnergy, had come under attack, creating uncertainty in regional energy markets.
The subsequent declaration of force majeure by QatarEnergy raised concerns among LNG-importing countries regarding near-term supply reliability and prompted many buyers to evaluate alternative sourcing options.
Against this backdrop, Pakistan has pursued a dual-track procurement approach aimed at balancing supply security with cost considerations.