Surging demand: Pakistan secures three Qatari, one spot LNG cargoes

ISLAMABAD: The government has secured three Qatari LNG cargoes under long-term contracts and one additional cargo from the spot market to meet the surging demands of the power sector and other economic sectors this summer.

In this respect, on Wednesday, the Pakistan LNG Limited (PLL) invited bids for the supply of one LNG cargo on a Delivered Ex-Ship (DES) basis at Port Qasim, Karachi, for a window of 6 and 7 June, 2026.

Federal Minister for Petroleum Ali Pervaiz Malik, along with the Secretary Petroleum Division, Spokesperson, Managing Directors of the Oil and Gas Development Company, and Pakistan State Oil, held an interaction session with media persons.

READ MORE: Pakistan seeks three LNG cargoes for April, May

In place of expensive imported LNG, the officials of the division said that indigenous gas is being diverted to power plants at a heavily subsidized rate of Rs. 200 per MMBtu, compared to the standard price of Rs. 3,500 per MMBtu.

A summary to formalize this pricing mechanism is currently being prepared for the approval of the Economic Coordination Committee (ECC).

At the request of the Power Division, Spokesman Petroleum Division said that the government has permitted the import of LNG cargos on a full cost-recovery basis to meet the country’s electricity demands. The government official further noted that the shipments, arriving under long-term agreements with Qatar, remain highly cost-effective due to being secured on a Cost and Freight (CFR) basis.

During the post-Middle East conflict, the government successfully restored an estimated 400 million cubic feet per day (mmcfd) of gas production. The supply had previously been curtailed due to lingering technical challenges and security concerns affecting major exploration and production companies, including OGDCL, PPL, and Mari Petroleum.

Copyright Business Recorder, 2026