Pakistan Floats Emergency LNG Tender as Shortage Worsens Power Outages

PLL seeks 140,000 cubic metres of spot LNG for early September amid fuel shortages affecting power generation

 

ISLAMABAD: Pakistan has launched a fresh tender to secure a spot LNG cargo for delivery in early September as shortages of re-gasified liquefied natural gas (RLNG), particularly for the power sector, continue to contribute to prolonged electricity outages across the country.

 

State-run Pakistan LNG Limited (PLL) has invited international suppliers to bid for 140,000 cubic metres of LNG, with a permissible variation of plus or minus 5%, for delivery at Port Qasim between September 4 and September 8, 2026.

 

The emergency procurement follows the government's recent apology over extended power outages, with authorities citing insufficient LNG supplies for power generation as one of the factors behind the increased load-shedding.

 

PLL, which procures LNG from international markets and arranges its supply to domestic consumers, has invited bids on a Delivered Ex-Ship (DES) basis for delivery to the Pakistan GasPort Consortium Limited terminal at Port Qasim, Karachi.

 

The tender was issued on August 30, with suppliers required to submit bids by 2pm on September 1. Technical proposals will be opened at 2:30pm, followed by commercial bids from technically qualified bidders at 3:30pm. The company plans to finalise the award on the same day, with bids remaining valid until 10pm.

 

The required LNG cargo is to be delivered within a five-day window starting September 4. The contracted quantity has been set at 140,000 cubic metres, subject to the specified tolerance.

 

PLL will award the contract to the technically eligible bidder offering the lowest evaluated price in US dollars per million British thermal units (MMBtu). Suppliers have been instructed to submit their commercial offers separately and quote prices to four decimal places.

 

The procurement is being conducted through a single-stage, two-envelope bidding process, requiring separate technical and financial proposals.

 

Under the qualification criteria, bidders must demonstrate that they have supplied at least eight LNG cargoes during the previous 24 months. Participants are also required to provide a $300,000 bid bond, while the successful bidder must submit an unconditional performance guarantee equivalent to 10% of the total contract value.

 

Limited LNG arrivals

 

Pakistan did not purchase any spot LNG cargoes during August, with only one shipment arriving under the country's long-term LNG agreement with Qatar.

 

In July, PLL procured five spot LNG cargoes, while no LNG shipment arrived from Qatar under the government-to-government arrangement.

 

The latest tender highlights the pressure on Pakistan's LNG supply chain as authorities seek additional fuel to support power generation and reduce the impact of ongoing electricity shortages.