en.Wedoany.com Reported - Pakistan has recently issued a new liquefied natural gas (LNG) tender, planning to procure 1 million tons of LNG to meet the surge in electricity demand caused by high summer temperatures. This marks the fourth LNG tender in the spot market over the past two months. However, not all tenders have successfully resulted in delivery contracts; in some cases, even the lowest bids were deemed too expensive by the state-owned operator Pakistan LNG Limited.

Pakistan has long relied on long-term LNG supplies from Qatar, but conflicts in the Middle East have disrupted Qatar's LNG production and exports. This has dealt a severe blow to Pakistan, as Qatar's LNG prices were affordable for the cash-strapped country. With this supply channel blocked, the Pakistani government has been forced to turn to the spot market for alternative supplies.

Asian spot LNG prices have surged significantly since the Iran conflict trapped all Middle Eastern LNG supplies from Qatar and the UAE within the Strait of Hormuz. Despite this, Pakistan has entered the spot market for the first time in nearly three years, as the absence of regular Qatari supplies triggered a power crisis and widespread blackouts.

In mid-May, the Pakistani government successfully negotiated with Iran to ensure the safe passage of two Qatari LNG carriers, which delivered much-needed fuel under existing long-term contracts. One of these vessels became the first LNG carrier to transit the Strait of Hormuz since March 1, when Iran closed the strait following missile attacks by the United States and Israel the previous day.

Although Pakistan secured critical energy imports, soaring oil and gas prices have still impacted its economy. The latest data released by the Pakistan Bureau of Statistics earlier this month showed that inflation surged 11.7% in May, with core inflation rising 9% year-on-year and 8% month-on-month compared to April.

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