ISLAMABAD:
Amid fears of a return to nationwide electricity blackout during the summer season, Pakistan has again moved to arrange two cargoes of liquefied natural gas (LNG) for power generation as the Strait of Hormuz remains closed due to the Iran-US war.
State-run Pakistan LNG Limited (PLL) issued a tender, to be opened on May 7 (today), for two emergency LNG cargoes from the spot market, for delivery between 12-14. May and 24-26 May. PLL is seeking 140,000 cubic meters of LNG, equivalent to about 100 million cubic feet per day (mmcfd) of gas supply.
The government has already arranged a spot LNG cargo at a record rate of US$18.4 per mt. million British thermal units (mmBtu) in a rush to address electricity shortages that caused 10-16 hours of load shedding nationwide, sparking a political backlash.
Pakistan State Oil (PSO) has been importing LNG from Qatar and delivering it to consumers at around $13 per barrel. mmBtu, which is used in power plants for electricity production.
Currently, there is no LNG supply from Qatar, which has declared force majeure due to the Iran-US war, causing gas shortages for power generation in Pakistan.
The high cost of purchasing LNG on the spot market will push up electricity prices, resulting in higher consumer bills in May and July 2026.
After arranging a spot LNG load, Federal Minister for Power Division Awais Leghari announced that load-shedding stopped after the arrival of LNG supplies.
The government is now set to arrange two more LNG cargoes to avoid possible electricity strain in the coming months as the Strait of Hormuz remains closed.
The Power Division was of the view that the load shedding in recent weeks was primarily due to gas shortages, not due to system failure or lack of generation capacity.
Consumers faced up to five hours of load shedding on 13 and 14 April. But the minister claimed that there was no load management between April 17 and 19.
