Oil, Gas and Refinery Sectors - updates

Pakistan again turns to spot LNG market, seeks bids for 2 cargoes​

Khaleeq Kiani
May 6, 2026

ISLAMABAD: State-run Pakistan LNG Limited (PLL) on Wednesday floated urgent tenders for the import of two liquefied natural gas (LNG) cargoes for delivery between May 12-14 and May 24-26 amid rising temperatures and power shortfall.

The company set May 7 (Thursday) as the deadline for bids, which will be opened the same day, given the urgent need to meet the power demand expected to spike again as the cargo imported in the last week of April has been consumed.

The tender comes after authorities’ expectations of the Middle East crisis easing and the reopening of the Strait of Hormuz did not materialise. Last month, PLL had rejected two bids for the same delivery period but accepted one cargo at $18.4 per million British thermal units (mmBtu).

Qatar, a long-term LNG supplier to Pakistan, had been reluctant to dispatch LNG cargoes stranded in the Gulf amid the closure of the Strait of Hormuz. Earlier, three LNG cargoes from Qatar destined for Pakistan were turned back from the strait due to security reasons.

Both tenders require 140,000 cubic metres of LNG to be delivered on an ex-ship (DES) basis. Each cargo of this capacity for Pakistan typically translates into around 100 million cubic feet per day (mmcfd) of gas supply.
 
In April, the Oil and Gas Regulatory Authority (Ogra) had notified a massive 19–22 per cent increase in the price of regasified liquefied natural gas (RLNG) to $12.50–$14 per mmBtu for sale at the distribution stage by the two Sui gas companies for the month of March.

The increase was mainly due to higher terminal charges amid lower import volumes and a minor rise in import prices, data from the authority showed.

The basket RLNG price was based on only two cargoes in March, compared to eight cargoes each in February and March, due to a force majeure declared by Qatar.

Both cargoes were imported under two LNG contracts between Pakistan State Oil and QatarGas at an average price of about $7.68 per mmBtu (DES), compared to $7.45 per mmBtu last month, but still significantly lower than $8.9 per mmBtu in March last year.
 
PLL, one of the public sector entities responsible for LNG imports, did not import any cargo last month. It had, in fact, imported one cargo a few months earlier after a gap of almost a year at about $7.65 per mmBtu through its old contract with a private entity.

The PLL, established almost a decade ago for LNG imports, could not import energy over the past year despite its executives and board of directors enjoying hefty remuneration and associated perks and privileges. It had last floated and LNG tender in December 2023 for delivery in January 2024 but later cancelled the tender.

Facing criticism over loadshedding even before the beginning of summer, the Power Division had already placed an order with the Petroleum Division last week to arrange around 400 million mmcfd of LNG for power generation, amid hopes of the opening of international supply routes.

LNG imports had stopped in March after the closure of the Strait of Hormuz following US-Israel attacks on Iran, which, in retaliation, targeted fuel installations in neighbouring countries, including Qatar, Saudi Arabia, the UAE and Kuwait, among others. Subsequently, Qatar declared force majeure early last month on all its global LNG contracts, including those with Pakistan.
 
Fatman17 said:
To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.
Click to expand...



Energy projects are normally financed on a debt equity ratio of 80:20. Now the issue is lenders don't concern themselves with whether such capacity is needed by the country or not or how much the power plant or LNG terminal is being used they want their mark up on to be paid on time therefore investors have to demand a guaranteed offtake guaranteed throughput or capacity payments
 

Pakistan govt hikes petrol by Rs14.92, diesel by Rs15 per litre​

  • The new prices will take effect from May 9, 2026
May 9, 2026
By BR Web Desk

The Pakistan government on Friday increased the prices of petroleum products by around Rs15 per litre for the next week, according to a notification issued by the Ministry of Energy (Petroleum Division).

The price of petrol (motor spirit) was raised by Rs14.92 per litre to Rs414.78 from Rs399.86 per litre.

Similarly, the price of high-speed diesel (HSD) was increased by Rs15 per litre to Rs414.58 per litre from Rs399.58 per litre.

The new prices will take effect from May 9, 2026.
 
As of May 2026, Pakistan's monthly petroleum consumption has shown a significant surge, with total sales in March 2026 reaching roughly 670,000 tons for petrol (Motor Spirit - MS) and 590,000 tons for High-Speed Diesel (HSD). Overall fuel sales for April 2026 reached over 1.1 million tonnes, indicating strong, though fluctuating, consumer demand.
Key Consumption Data (Approximate monthly figures 2026):
  • Petrol (Motor Spirit): \(\sim \)670,000 tons (based on March 2026 data).
  • Diesel (HSD): \(\sim \)590,000 tons (based on March 2026 data).
  • Total Consumption: Approx 58.8 million liters of petrol and diesel per day combined, as of April 2026.
Recent Trends:
  • March Surge: Fuel sales surged in March 2026, with petrol rising 8% and diesel 13% over the previous month.
  • Impact of Pricing: Higher fuel prices have caused some volatility in demand, leading to significant fluctuations in monthly consumption trends.
  • Sectoral Usage: While transport demand is high, furnace oil (FO) sales have seen substantial drops due to reduced usage in power generation, falling to 72,000 tons in April 2026 from much higher levels in previous years.
Disclaimer: Fuel consumption figures can fluctuate monthly based on seasonal demand, economic conditions, and pricing changes.

Goggle AI
 
You must log in or register to reply here.

Users who are viewing this thread

Total: 1 (members: 0, guests: 1)

Pakistan Defence Latest

Country Watch Latest

Latest Posts

Share this page

Back
Top