Govt Rushes For Fresh LNG Cargo As Load Shedding Continues

Pakistan has floated a fresh tender to import a spot LNG cargo for delivery in early September as a shortage of re gasified liquefied natural gas, particularly for the power sector, continues to contribute to hours long electricity outages nationwide.

Key points

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• The tender was issued August 30, with bids due by 2 p.m.
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• Interestingly, the administration produced no spot LNG purchases in August, with only one cargo arriving under its long term contract with Qatar.
• PLL will award the contract to the technically compliant bidder offering the lowest evaluated cost in US dollars per million British thermal units.

State run Pakistan LNG Limited on Sunday invited international suppliers to bid for 140, 000 cubic meters of LNG, with a tolerance of plus or minus 5 percent, for delivery at Port Qasim between September 4 and September 8, 2026.

For context, the emergency procurement comes after the administration apologized to the nation last week over prolonged power outages and attributed the load shedding partly to a shortage of LNG needed for power generation.

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PLL, which procures LNG from international markets and arranges its onward supply to consumers, has sought bids on a Delivered Ex Ship basis for delivery at the Pakistan Gas Port Consortium Limited terminal at Port Qasim, Karachi.

Notably, the tender was issued August 30, with bids due by 2 p.m. On September 1. Technical offers will be opened at 2: 30 p.m., followed by commercial bids from technically compliant suppliers at 3: 30 p.m. PLL intends to award the contract the same day, with bids remaining valid until 10 p.m.

Meanwhile, the cargo is required within a five day delivery window beginning September 4, with the contracted quantity set at 140, 000 cubic meters, subject to the specified 5 percent tolerance. PLL will award the contract to the technically compliant bidder offering the lowest evaluated cost in US dollars per million British thermal units. Suppliers must quote their commercial cost separately and round it to four decimal places.

Meanwhile, the procurement is being conducted under a single stage, two envelope process, requiring bidders to submit separate technical and commercial proposals. To qualify, suppliers must demonstrate that they have delivered at least eight LNG cargoes during the preceding 24 months. While the successful supplier will be required to furnish an unconditional performance guarantee equal to 10 percent of the total contract value, bidders must additionally submit a $300, 000 bid bond.

Interestingly, the administration produced no spot LNG purchases in August, with only one cargo arriving under its long term contract with Qatar. While no LNG cargo was received from Qatar under the administration to administration agreement, in July, Pakistan LNG Limited procured five spot cargoes. Stay Connected with ProPakistani.

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Taken together, the developments around govt Rushes For Fresh LNG Cargo As Load Shedding Continues point to a situation that is still moving, and the coming days should bring more clarity.