Pakistan seeks urgent LNG cargo as Hormuz attacks disrupt Qatar supplies: report
- This comes after maritime traffic through Hormuz slows down sharply due to renewed Middle East tensions
Pakistan is urgently seeking liquefied natural gas (LNG) on the costly spot market after renewed US-Iran hostilities in the Strait of Hormuz disrupted Qatari supplies, forcing a canceled shipment.
- Pakistan's urgent need for LNG.
- Disruptions in the Strait of Hormuz.
- Rising spot market prices for LNG.
Pakistan is urgently seeking to secure a liquefied natural gas (LNG) cargo after renewed hostilities in the Strait of Hormuz disrupted supplies from Qatar, forcing the country back into the costly spot market Bloomberg reported.
State-owned Pakistan LNG Ltd (PLL) has issued a tender to purchase an LNG cargo for delivery on July 15-16, with bids due on Friday, according to a notice published on the company’s website.
The government approved the tender on Wednesday after a Qatari LNG shipment scheduled for this month was canceled, traders familiar with the matter told Bloomberg, requesting anonymity because the information is private.
The disruption comes as maritime traffic through the Strait of Hormuz has slowed sharply following an escalation in the Iran-US conflict. The US conducted fresh strikes on Iran after Tehran reportedly attacked vessels in the strategic waterway, including an LNG tanker.
A vessel carrying a Qatari LNG cargo destined for Pakistan also abandoned its voyage through the strait earlier this week.
On Wednesday, the US military said it had launched additional strikes on Iran aimed at preserving freedom of navigation in the Strait of Hormuz, prompting Iranian retaliatory attacks on Kuwait and Bahrain.
The latest escalation followed Tuesday’s reported assault on three cargo ships transiting the strait and came hours after US President Donald Trump declared that an interim ceasefire with Iran was “over.”
“US Central Command forces have started conducting additional strikes against Iran to further degrade their ability to threaten freedom of navigation in the Strait of Hormuz,” CENTCOM said in a post on X.
Pakistan relies heavily on Qatar for its LNG needs, with nearly all imports sourced under long-term contracts last year. However, the ongoing disruption has strained supplies, forcing Islamabad to turn to the spot market to avoid gas shortages.
Earlier, Business Recorder reported that Pakistan had purchased an LNG cargo for July 10-11 delivery from TotalEnergies SE at $17.37 per million British thermal units (mmBtu), nearly double the price under its long-term Qatari contracts, according to Bloomberg.
The cargo was awarded through a tender that closed last Friday, highlighting the rising cost of securing emergency fuel supplies amid continued uncertainty in the Gulf.