ISLAMABAD:
Amid fears of a return to nationwide power load shedding during the summer season, Pakistan has again decided to arrange two one-off 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 invited tenders, which will be opened 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, the equivalent of around 100 million cubic feet per day (mmcfd) of gas supply.
The government has already arranged a one-off shipment of LNG at a record rate of $18.4 per million British thermal units (mmBtu) in a rush to counter power shortages that have caused 10 to 16 hours of load shedding across the country, triggering a political backlash.
Pakistan State Oil (PSO) imports LNG from Qatar and supplies 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 gas shortages for power generation in Pakistan.
The high cost of LNG purchased on the spot market will drive up electricity prices, leading to higher consumer bills in May and July 2026.
After arranging a one-off LNG shipment, Federal Minister for Power Division Awais Leghari announced an end to load shedding following the arrival of LNG supplies.
The government is now ready to arrange two additional LNG cargoes to avoid possible power cuts in the coming months as the Strait of Hormuz remains closed.
The Energy Division was of the view that the load shedding observed in recent weeks was mainly due to a gas shortage, and not a system failure or lack of generation capacity.
Consumers faced up to five hours of load shedding on April 13 and 14. However, the minister affirmed that there was no load management between April 17 and 19.
