Pakistan Plans Six August LNG Cargoes as Qatar Sends Only Three Since Hormuz Disruptions Began
Islamabad is finalising spot purchases for July and August after long-term Qatari supply fell far short of covering summer power demand.
Pakistan's government is finalising a strategy to purchase at least one LNG cargo from the spot market for July delivery and as many as six shipments for August, Bloomberg reported on Thursday (2026-07-16), citing people familiar with the matter. The purchases come as the country's two long-term supply deals with Qatar, covering about 6.75 million tonnes annually, have fallen well short of meeting the summer demand gap that opened after Strait of Hormuz disruptions began.6,5
The scale of the shortfall explains the urgency. Qatar accounts for roughly 90% of Pakistan's LNG imports, and since conflict began disrupting Hormuz flows in March 2026, Ras Laffan has managed to send only three cargoes, with damage to production capacity expected to take months to repair. The power sector, which consumes almost 70% of imported LNG, has so far avoided prolonged blackouts thanks to increased solar capacity and hydropower output that climbed to nearly 4,100 MW from 1,800 MW.3
Solar falls away in the evening. Peak demand is expected to exceed 28,000 MW this summer, which leaves LNG-fired generation as the only dispatchable option during those hours. Pakistan has been forced back to the spot market repeatedly since the re-escalation around Hormuz. In June (2026-06-04), Pakistan LNG issued a tender for 1 million tonnes — the fourth spot tender in a matter of weeks, The Nation reported, citing seasonal electricity demand.3,1
Back in April, conditions looked entirely different. Deliveries were being deferred, shipments diverted and domestic gas production curtailed to manage an oversupply that had accumulated before the conflict. None of that reduced Pakistan's structural dependence on Qatar, and when disruptions hit in March 2026, the supply halt was immediate.5
The cost of that whipsaw has been severe. Pakistan purchased its most expensive LNG cargo in about four years in early June (2026-06-05), according to Bloomberg, as state-owned Pakistan LNG Ltd. was forced to accept whatever the market offered. That came after a Qatar cargo was cancelled and a new tender was launched for July 15-16 delivery — a timeline so tight it guaranteed a price premium.2,4
Inflation is compounding the pressure. Pakistan's headline inflation soared 11.7% in May, the state statistics agency reported, with core inflation up 9% on the year and 8% on April. For a country already managing a balance-of-payments strain, every emergency cargo at spot prices deepens the fiscal hole.1
The spot market is not charitable to buyers with tight delivery windows. Higher oil-linked contract slopes of 15% to 17% on short-term agreements are raising procurement costs well beyond what Pakistan's long-term Qatari deals were priced at. Traders familiar with the tenders have noted that each emergency purchase sets a new marginal reference for the next one.3
Pakistan is not alone in this position. India's LNG demand is rising, and the two countries are now competing for the same limited pool of spot cargoes across Asian markets. JKM, the Asian LNG benchmark, was quoted at $24.38/MMBtu at Tuesday's (2026-09-08) close, with the entire region still pricing in Hormuz supply risk.1
The power sector's relative resilience so far offers some counterweight. Hydropower at 4,100 MW against a 28,000 MW peak is not nearly sufficient on its own, but combined with solar it has carried Pakistan through the worst summer heat without the systemic grid collapse some analysts had anticipated. The harder test arrives during August evening peaks, precisely when the six cargoes Pakistan is now seeking will need to land on schedule.3,6
Gas traders following Pakistan's tender activity are also tracking the Qatari recovery timeline. Ras Laffan's damaged capacity represents the single biggest swing factor for Asian LNG availability in Q4, and every additional week of delay pushes more buyers into a spot market that is already absorbing elevated demand. The three cargoes Qatar has dispatched since March are a trickle, not a recovery.3
Pakistan's August procurement target — one cargo for July and up to six for August — is an ambitious schedule for a buyer that has repeatedly been outbid or delayed across recent months. Each missed window triggers another emergency tender, another premium paid, and another point added to an inflation print that is already running at its highest in years.6,1
No public timeline exists for when Ras Laffan returns to full output. Until one does, every Pakistani cargo tender is a live auction for urgency, and the price of that urgency will keep feeding back into the country's import bill through the rest of the year.3