Pakistan LNG Issues Urgent LNG Tender Amid Middle East Crisis

Pakistan LNG Limited has launched a spot tender for liquefied natural gas (LNG) as supply shortages loom amid the U.S.-Israeli conflict with Iran. The company is inviting bids for three LNG cargoes, each around 140,000 cubic metres, to be delivered in late April and early May to Port Qasim in Karachi.

The decision follows severe power outages due to dwindling hydropower output and disruptions in LNG supply, highlighting challenges in fuel availability amidst soaring energy demand. The tender aims to meet increasing power needs and reduce reliance on more expensive diesel and furnace oil.

Amid restricted shipping through the Strait of Hormuz, global LNG prices have risen sharply. While Pakistan steps towards renewable power, the current crisis underscores its vulnerability to supply shocks, necessitating LNG imports to manage peak demands and mitigate outages.

(With inputs from agencies.)