PLL Invites Bids for LNG Cargoes Amid Supply Pressure

As Pakistan steps up efforts to secure fuel for power generation, Pakistan LNG Limited (PLL) has issued an urgent tender for two LNG cargoes amid rising power demand and ongoing uncertainty in global supply routes.

The cargoes are required for delivery in two windows — May 12-14 and May 24-26 — with bidding scheduled for May 7, reflecting the immediate pressure on the energy system. The urgency follows the consumption of the last LNG shipment imported in late April, leaving a limited buffer in the system as temperatures begin to rise.

Each cargo will carry approximately 140,000 cubic metres of LNG, translating into approximately 100 mmcfd of gas, a critical input for power generation during peak load conditions.

The move comes at a time when expectations of improved supply conditions in the Gulf region have failed to materialise. Shipping routes are limited, and previous disruptions linked to regional tensions continue to affect LNG flows. Qatar, Pakistan’s long-time supplier, is also facing operational challenges, with several cargoes unable to move through affected sea lanes in recent weeks.

The supply crunch is already pushing up domestic prices. The Oil and Gas Regulatory Authority (OGRA) recently increased RLNG rates by 19 to 22 percent, taking prices at the distribution stage to $12.50–$14 per MMBtu. The increase is due to lower cargo availability at LNG terminals and higher fixed costs.

Data shows that LNG imports fell sharply in March, when only a few cargoes were available, compared to significantly higher volumes in previous months. While long-term contracts continued to deliver gas at relatively low rates — around $7.68 per MMBtu — overall supply constraints limited their impact on the market.

Adding to the challenge, PLL has had limited import activity over the past year, with only occasional cargo purchases. The latest tender marks a renewed effort to re-enter the market in difficult conditions.

The Power Division is already seeking up to 400 MMCFD of LNG to sustain power generation, with the coming weeks likely to test the country’s ability to manage energy demand during the early summer phase.