Pakistan to buy 25-26 LNG cargoes for winter, eyes $26-27 price cap
Pakistan to buy 25-26 LNG cargoes for winter, eyes $26-27 price cap
Pakistan’s plan to buy LNG cargoes for winter will see 25 to 26 cargoes procured from November to February to meet higher gas demand during the coming season, sources told ProPakistani on Friday.
The cargoes will be bought through long-term arrangements with Qatar and friendly countries as well as from the spot market. The government intends to keep spot LNG prices between $26 and $27 per MMBtu, the sources said.
LNG cargoes for winter plan: terminal reforms on the table
Alongside the procurement plan, the government has decided to amend the regulatory framework for LNG terminals to improve the use of available capacity. Private power producers may be allowed to import LNG independently, while third-party access could be opened to use vacant capacity at the terminals.
The Petroleum Division is preparing a summary of the proposed measures for consideration by the Cabinet Committee on Energy. Prime Minister Shehbaz Sharif has already received an initial briefing on the proposed gas load management plan, while final approval will be sought from the federal cabinet.
Fewer cargoes than last winter
During the previous winter season, Pakistan State Oil and Pakistan LNG Limited imported 36 LNG cargoes, a higher figure than the 25-26 now planned. The lower number reflects shifting demand patterns, including the rapid growth of rooftop solar which has trimmed power-sector gas consumption, though households still depend heavily on gas in winter, particularly in northern Punjab and Khyber Pakhtunkhwa.
Separate tender documents show Pakistan LNG has also invited bids for six spot cargoes for December delivery, pointing to active buying on both the term and spot markets.
What happens next
The Petroleum Division’s summary will go to the Cabinet Committee on Energy for approval before the procurement begins. With the winter demand peak approaching, the government will need to lock in cargoes early to avoid a repeat of past gas shortfalls.
FAQs
How many LNG cargoes will Pakistan buy this winter?
The government plans 25-26 cargoes for November to February, through long-term contracts with Qatar and friendly countries plus spot market purchases.
What price is the government targeting for spot LNG?
Sources say the plan is to keep spot LNG prices between $26 and $27 per MMBtu.
What reforms are planned for LNG terminals?
The government wants to amend the terminal regulatory framework, possibly letting private power producers import LNG independently and opening third-party access to vacant terminal capacity.
How does this compare with last winter?
Last winter, PSO and Pakistan LNG imported 36 cargoes, so the planned 25-26 is a smaller volume, reflecting changing demand dynamics.
