Pakistan Fails to Procure LNG as Third Tender Receives No Bids, Raising Severe Load-Shedding Fears Nationwide
ISLAMABAD: The energy sector in Pakistan is in a dire condition with the failure of efforts to import Liquefied Natural Gas (LNG) posing serious threats to the country’s energy supply, which has been making a dent in the growing problems of load shedding and frequent power outages.
Pakistan LNG Limited (PLL) has issued an international tender for the third time to buy LNG cargoes to be delivered in the period September 12-16, according to sources. But, by the last deadline of 8th September, none of the international energy providers and trading firms were willing to put in a bid.
Located in the same area, the location of previous cancellations and regional disruption are also highlighted.
Two prior tenders had been abandoned due to extremely high bids before this one failed. Spot LNG cargoes are bought by Pakistan on regular basis from international market to power its thermal energy plants and cover its peak energy demands at home.
But insiders in the energy industry note that the spot market is extremely tight in this region due to supply disruptions from Qatar, tensions in the region and escalation in US-Iran relations, which have made it difficult for Islamabad to ensure supply of essentials.
The six 6000 MW power plants are set to be shut down.
Spot cargoes have been continually unavailable, and the shortages of fuels have led to complete closure of the LNG-fired power plants, having a total installed capacity of 6000 MW.
Power sector professionals fear that if alternative fuel sources are not quickly put in place, stability of the grid and industrial production will be under unprecedented pressure.