ISLAMABAD:
Amid fears of a return to electricity load shedding across the country during the summer season, Pakistan has once again taken steps to arrange two spot shipments of liquefied natural gas (LNG) for power generation as the Strait of Hormuz remains closed due to the war between Iran and the United States.
State-owned Pakistan LNG Limited (PLL) has launched a tender, which will open on May 7 (today), for two urgent cargoes of LNG from the spot market, for delivery between May 12-14 and May 24-26. PLL is seeking 140,000 cubic meters of LNG, equivalent to around 100 million cubic feet per day (mmcfd) of gas supply.
The government has already organized a spot loading of LNG at a record rate of $18.4 per million British thermal units (mmBtu) in a bid to counter electricity shortages that caused 10 to 16 hours of load shedding across the country, sparking a political backlash.
Pakistan State Oil (PSO) has been importing LNG from Qatar and supplying it to consumers at around $13 per mmBtu, which is used in power plants for electricity generation.
Currently, there is no LNG supply from Qatar, which has declared force majeure due to the war between Iran and the United States, causing a shortage of gas for power generation in Pakistan.
The high cost of LNG purchased on the spot market will increase electricity rates, resulting in higher bills for consumers in May and July 2026.
After arranging a one-time LNG shipment, Federal Minister for Energy Division Awais Leghari announced the end of load shedding following the arrival of LNG supplies.
The government is now set to arrange two additional LNG shipments to avoid potential load shedding in the coming months while the Strait of Hormuz remains closed.
The Energy Division considered that the load shedding experienced in recent weeks was primarily due to a gas shortage, not a system failure or lack of generating capacity.
Consumers faced up to five hours of load shedding on April 13 and 14. However, the minister stated that there was no cargo management between April 17 and 19.
