Key facts
- Pakistan is seeking emergency LNG cargoes on the spot market.
- Disruptions in the Strait of Hormuz have affected Qatari LNG shipments.
- Pakistan LNG issued a second tender for spot supply this month.
- The country has purchased at least four spot LNG cargoes for July delivery.
- This is the most spot cargoes Pakistan has bought in a single month since the Iran war began.
Pakistan is actively seeking liquefied natural gas (LNG) on the spot market due to disruptions in its usual term supplies from Qatar, stemming from renewed hostilities impacting traffic through the Strait of Hormuz. The state-controlled Pakistan LNG has issued a second tender this month for a spot cargo, aiming for delivery in July. This move comes after a Qatari shipment was canceled due to the escalating situation. If successful, Pakistan would have procured at least four spot LNG cargoes for July, the highest monthly total since the Iran war commenced on February 28. Historically reliant on long-term fixed deals with Qatar, Pakistan has faced procurement challenges since the conflict began and halted transit through the vital waterway. The latest escalation could force Pakistan to secure additional, potentially more expensive, spot cargoes to replace the shortfall from Qatar.