The government has decided to purchase three LNG cargoes on an emergency basis to tackle the worsening power shortage and load shedding across the country.
The move comes as electricity demand rises, the power shortfall reaches up to 4,500MW, and citizens face 6 to 7 hours of load shedding in different areas.
According to sources in the Ministry of Petroleum, the government has taken an important decision to immediately procure three LNG cargoes to support power generation.
Pakistan LNG Limited had invited bids from companies a day earlier and has now received a total of four bids for the emergency supply.
LNG cargo delivery schedule
Sources said the LNG cargoes will be delivered between April 27 and May 8, while the bid windows submitted by companies cover deliveries from late April to mid-May.
TotalEnergies submitted a bid of $18.88 for cargo delivery between April 27 and 30.
Vitol Bahrain offered a bid of $18.54 for delivery between May 1 and 7.
OQ Traders submitted a bid of $17.997 for delivery between May 8 and 14.
LNG supply to help reduce power shortfall
Officials said around 100 MMCFD of gas will be available from each LNG cargo.
The additional LNG supply is expected to help reduce electricity load shedding by supporting power plants at a time when demand has increased sharply.
At present, the country is facing a power shortfall of up to 4,500MW, leading to prolonged load shedding across Pakistan.
According to sources, cargo supplies from Qatar were affected due to the closure of the Strait of Hormuz. Following the disruption, the government decided to purchase LNG immediately to keep power generation running and reduce pressure on the energy system.
Officials said the emergency LNG purchase is also aimed at avoiding the use of expensive diesel and furnace oil for power generation.
There were concerns that relying on costly fuels would increase the cost of electricity production. The LNG imports are expected to help keep production costs under control while reducing the intensity of load shedding.
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