Pakistan's state-owned Pakistan LNG released a tender over the weekend to procure an LNG shipment for delivery between June 30 and July 4, with offers due on Monday. This urgent request comes as a series of attacks in the Strait of Hormuz has severely disrupted the flow of the super-chilled fuel. The country is grappling with supply challenges exacerbated by the current geopolitical tensions in the critical shipping lane.
On Monday, Pakistan LNG Ltd. successfully purchased a cargo for the specified delivery window from BP Plc at a price of $16.74 per million British thermal units. This price is notably higher than the spot price for Asia, which was trading in the $15s per million Btu on the same day, according to statements from traders familiar with the transaction. The premium paid highlights the urgency and impact of the supply disruptions.
This is not Pakistan's first encounter with LNG supply issues linked to the Strait of Hormuz. In May 2026, Pakistan opted not to award an emergency tender for two LNG shipments for May delivery. At that time, the government was betting on an easing of hostilities between the US and Iran and the imminent arrival of cheaper supplies from Qatar. However, the continued flare-up in the region has demonstrated the ongoing vulnerability of supply chains through the Strait. The Strait of Hormuz is a vital chokepoint, with approximately 20% of global liquefied natural gas trade passing through it, making it critical for countries like Pakistan that rely on these imports.
