Pakistan Secures Most Expensive Spot LNG Cargo in Nearly Four Years

Pakistan has purchased its costliest spot LNG cargo in almost four years, securing a shipment for delivery on June 6-7 as authorities move to meet rising gas and power demand during the summer season.

According to tender documents issued by Pakistan LNG Limited (PLL), BP Singapore submitted the lowest bid at $19.13 per MMBtu. Other valid offers ranged from $19.14 to $19.94 per MMBtu.

The cargo was procured to strengthen fuel availability for power generation and domestic gas supplies at a time of increasing energy demand.

Energy market reports indicate that the shipment was arranged after a planned LNG cargo from Qatar was canceled shortly before delivery, forcing Pakistan to seek replacement supplies from the spot market.

The tender attracted bids from several international suppliers, including Vitol Bahrain, TotalEnergies Gas & Power, SOCAR Trading, and BP Singapore, with BP’s offer emerging as the most competitive.

The purchase underscores the risks faced by LNG-importing countries in a volatile global gas market, where supply disruptions and geopolitical developments can quickly drive up prices. While Pakistan relies primarily on long-term LNG agreements, particularly with Qatar, it occasionally turns to the spot market when additional supplies are needed.

The cargo is scheduled to arrive at Port Qasim on June 6-7 and is expected to help ease pressure on the country’s gas and electricity systems during the peak summer demand period.