Pakistan secures another LNG spot cargo ahead of July delivery

ISLAMABAD: Pakistan has secured another spot cargo of liquefied natural gas (LNG), marking a fresh step in its efforts to strengthen fuel supplies as energy demand continues during the summer season.

According to state-owned Pakistan LNG Limited (PLL), three bids were received for the LNG cargo scheduled for delivery between July 15 and 16. After evaluating the offers, the company awarded the contract to the lowest bidder.

PLL said the winning bid was submitted at $18.23 per million British thermal units (MMBtu), while the other two bids stood at $18.59 and $18.72 per MMBtu, respectively.

The contract has been awarded to BP Singapore, which will supply a cargo of 140,000 cubic metres of LNG. The shipment is scheduled to arrive at the PGPCL LNG Terminal at Port Qasim on July 15–16.

The latest procurement will increase Pakistan’s LNG imports to 10 cargoes this year, reflecting the country’s continued reliance on imported natural gas to meet domestic energy requirements and support electricity generation.

Spot LNG purchases are typically made when additional fuel is required beyond long-term contractual supplies or when seasonal demand rises. Energy analysts say timely procurement is crucial for ensuring uninterrupted gas supplies to power plants, industries and households, particularly during periods of increased consumption.

Pakistan has been carefully monitoring global LNG prices in recent months, balancing the need to secure adequate supplies while managing import costs. The acceptance of the lowest bid is expected to help reduce procurement expenses compared with higher-priced offers.

The arrival of the BP Singapore cargo is expected to provide additional support to the national gas network and help maintain stable energy supplies during the ongoing peak demand period.

The latest LNG purchase underscores Pakistan’s broader strategy of diversifying energy sources and maintaining sufficient fuel reserves to avoid supply disruptions. With global energy markets remaining volatile, authorities continue to monitor international prices and market conditions while planning future procurements to ensure the country’s energy security and support economic activity.