Pakistan has issued a new tender for 1 million tons of liquefied natural gas (LNG), according to The Nation. The move comes as electricity demand rises with the onset of summer heat and pressure builds on the country’s energy system.
Rising reliance on spot LNG market
This marks the fourth LNG spot tender issued in the past two months by Pakistan LNG Limited. The company continues to struggle with volatile global prices and limited affordable offers. In several recent tenders, even the lowest bids were rejected as too expensive for the cash-strapped importer.
Moreover, Pakistan has increasingly turned to the spot market after facing disruptions in long-term supply arrangements. The country previously depended heavily on Qatar for fixed-term LNG contracts. However, recent geopolitical tensions in the Middle East have disrupted supply chains and tightened global availability.
Energy pressure and supply constraints
As a result, spot LNG prices in Asia have surged sharply. Supply constraints across the Middle East have also reduced available volumes in the global market. Pakistan’s power sector has felt the impact, with fuel shortages contributing to energy instability and periodic outages.
Furthermore, officials say the government is trying to secure alternative supplies to stabilize electricity generation. However, high prices continue to strain public finances and energy planning.
In addition, reports suggest that Pakistan briefly managed to secure LNG shipments under existing long-term arrangements earlier in May. These deliveries helped ease immediate shortages but did not resolve long-term supply concerns.
Economic impact and inflation pressure
Rising global energy costs have also affected inflation in Pakistan. The country recorded an 11.7% inflation rate in May, while core inflation also showed an upward trend. Analysts say higher fuel and gas prices are adding pressure on households and businesses.
