Pakistan Scrambles for LNG as Winter Gas Crisis Deepens

Pakistan finds itself grappling with a severe winter gas crisis, leading the government to issue a tender for purchasing two LNG cargoes from international suppliers. The tender, which was re-issued following the rejection of bids from previous suppliers, aims to secure LNG deliveries in mid-December and early January. The winning bidders are expected to deliver the LNG cargoes at Port Qasim, with one shipment arriving between December 14 and 16, and the other between January 9 and 11, 2027.

The Pakistani government's struggle to secure LNG supplies stems from the Iran war, which caused disruptions to Qatari term LNG supplies. Pakistan had relied heavily on Qatari term LNG before the conflict, but the war forced the country to turn to expensive spot purchases, pushing its power generation costs higher. While some LNG cargoes from Qatar have managed to reach Pakistan following assurances from Iran, these term supplies remain more expensive than the spot LNG cargoes currently available on the market.

The situation has been dire for Pakistan, as the country has had to secure an additional 10 cargoes on the spot market for deliveries between November 2026 and February 2027 to ensure adequate gas volumes for the winter. With spot prices soaring due to massive disruptions to Qatari term supply and intense competition from Asian and European buyers, Pakistan faces the prospect of paying over $1 billion to secure the necessary LNG for the winter months.