Pakistan launches urgent LNG tender

Strait of Hormuz tensions force spot market purchase; delivery scheduled between Tuesday-Saturday

ISTANBUL/ KARACHI:

Pakistan has launched an urgent tender to buy a liquefied natural gas (LNG) cargo for delivery this week, as renewed tensions in the Strait of Hormuz disrupt energy flows through one of the world's most important shipping routes.

The state-owned Pakistan LNG Limited invited international suppliers to bid for one LNG cargo on a delivered ex-ship basis at Port Qasim, according to a tender document published by the Public Procurement Regulatory Authority (PPRA).

The cargo is scheduled for delivery between Tuesday and Saturday. The tender seeks 140,000 cubic metres of LNG, with a tolerance of plus or minus 10%.

The Strait of Hormuz is a key route for global LNG shipments, particularly from Qatar, one of Pakistan's main suppliers. Any interruption to vessel traffic through the waterway can force buyers to turn to the spot market, where cargoes are often more expensive and harder to secure at short notice.

Pakistan has faced repeated energy supply pressure since the conflict in the region affected LNG flows, prompting the government to seek additional spot cargoes to cover domestic demand.

The latest tender follows attacks on commercial vessels in the Strait of Hormuz, which have raised concerns among shipowners, insurers and energy buyers over the safety of transits through the waterway.

On June 11, Pakistan opted to purchase LNG from the spot market to meet the demand of power producers. Earlier, the government had secured gas cargoes from Qatar.

Pakistan's local gas production is shrinking every year and its reliance on imported gas is increasing. Pakistan has a long-term LNG supply contract with Qatar, but cargo deliveries were suspended due to the US-Iran conflict.

THE ORIGINAL STORY APPEARED ON ANADOLU AGENCY WITH ADDITIONS FROM OUR CORRESPONDENT