Pakistan Secures Second Qatari LNG Cargo Amidst Power Shortage Fears

Pakistan received its second liquefied natural gas (LNG) cargo from Qatar on Friday, May 16, 2026, marking the second such delivery from the Gulf nation within three days. This strategic delivery is a key step for Pakistan in addressing its persistent energy challenges and ensuring a stable power supply. The LNG carrier Mihzem, a vital part of this supply chain, successfully berthed at Pakistan GasPort Consortium Limited’s (PGPL) Terminal-1 at Port Qasim, Karachi. The vessel transported approximately 160,000 cubic metres of LNG, a significant volume aimed at bolstering the country's energy reserves. Following its arrival, both import terminals have efficiently commenced regasification operations, actively injecting re-gasified LNG (RLNG) into the national transmission system to alleviate existing power shortages across the country.

Previous Cargo Details

Just three days prior, on May 13, 2026, the Q-Flex LNG carrier Al Kharaitiyat had docked at the Engro LNG terminal, delivering the first of the two recent shipments. This initial delivery set the stage for the subsequent arrival of the Mihzem. Both of these critical cargoes, including the one delivered by the Mihzem, were secured under a term price arrangement, reflecting a long-term commitment to energy security. This specific pricing mechanism is equivalent to 13.37 per cent of Brent crude oil, providing a structured and predictable cost for these essential imports. The arrival of these two substantial cargoes is intended to significantly bolster Pakistan's energy supply, offering a much-needed boost to the national grid.

Market Context and Supply Disruptions

The timing of these deliveries is particularly pertinent given the current global energy landscape. Spot LNG prices in the international market have surged dramatically, currently exceeding $17 per MMBtu, indicating a volatile and challenging procurement environment. This increase in global energy costs coincides with recent and significant disruptions affecting supply chains worldwide. Four Pakistan-bound LNG shipments were among those that became stranded due to issues connected to the US-Israel conflict with Iran, noting the geopolitical risks inherent in international energy trade.

The broader conflict, which abruptly erupted on February 28, 2026, led to significant challenges in maritime transport and energy flows from the Gulf region. Following the conflict's outbreak, a total of 8 to 9 LNG cargoes loaded in the Gulf region encountered stranding, causing delays and uncertainty in global energy markets. These widespread disruptions have undeniably contributed to the volatility observed in international LNG markets and show the profound geopolitical factors influencing energy availability and pricing.

Domestic Power Demand

Pakistan's power sector is currently consuming approximately 310 million cubic feet per day (mmcfd) of re-gasified liquefied natural gas (RLNG) for electricity generation. This substantial consumption rate reflects the ongoing and critical demand for energy within the country, particularly for industrial and domestic use. The recent arrivals of Qatari LNG cargoes are therefore intended to directly support these domestic energy requirements, particularly as challenges in the international market persist. The injection of RLNG into the national transmission system aims to mitigate existing power shortages, which have been a recurring concern for the country. The consistent supply of gas to power plants is absolutely critical for maintaining grid stability and meeting the country's electricity needs amidst fluctuating global energy prices and geopolitical disruptions affecting supply chains.

Diplomatic Efforts and Future Supply

In light of the ongoing energy demands and market volatility, the government of Pakistan is actively engaging Qatari authorities to secure two additional liquefied natural gas (LNG) cargoes. These proactive efforts aim to further bolster the country's energy reserves and address persistent power generation requirements, ensuring a more stable and reliable energy future.

To advance these key negotiations, Minister for Petroleum and Natural Resources Ali Pervaiz Malik held a productive meeting with the ambassador of Qatar. The discussion focused intently on the potential acquisition of further LNG supplies from Qatar to support Pakistan's energy security amidst fluctuating global market conditions. This diplomatic engagement shows Pakistan's strategic approach to maintaining a stable energy supply chain, recognizing the importance of strong bilateral relationships in navigating complex international energy markets.