Pakistan moves to buy LNG, seeks bids for 3 cargoes

Power division seeks emergency LNG cargoes amid rising electricity demand

 Pakistan’s Power Division has requested the Petroleum Division to arrange four liquefied natural gas (LNG) cargoes on an emergency basis to meet surging electricity demand driven by rising temperatures.

According to media reports, the Power Division, in a letter, highlighted a sharp increase in electricity consumption across the country due to the ongoing heatwave, stressing that an uninterrupted LNG supply for gas-fired power plants has become essential.

The letter urged the Petroleum Division to secure the cargoes under existing long-term agreements with Qatar to ensure continuity in power generation. It warned that failure to arrange timely LNG supplies could result in severe load shedding.

Officials also noted that reliance on alternative fuels such as diesel would significantly increase electricity generation costs, placing an additional financial burden on consumers.

The communication further pointed out that several gas-based power plants are already facing fuel shortages, and any delay in LNG procurement could disrupt electricity production.

Pakistan’s energy sector continues to face challenges, including fuel import dependence, financial constraints, and supply-demand gaps. During peak summer months, electricity demand typically ranges between 25,000 and 30,000 megawatts, often exceeding available generation capacity.

LNG is considered a relatively cost-effective and efficient fuel for power generation. However, its availability remains uncertain due to global price fluctuations and supply chain constraints. In previous years, shortages have forced the country to rely on expensive alternatives such as furnace oil and diesel, contributing to higher electricity tariffs and increasing circular debt.

Experts say timely decisions are critical to stabilise the energy sector, warning that delays could lead to higher power costs and difficulties for both industrial and domestic consumers