ISLAMABAD: Global energy giant TotalEnergies is set to dispatch the LNG carrier Seapeak Magellan after securing a contract to supply one liquefied natural gas (LNG) cargo at a rate of $18.4 per million British thermal units (mmbtu), officials confirmed.
According to reports published by The News, the vessel is expected to arrive at the PGPCL terminal at Port Qasim on April 30, 2026. The shipment will carry nearly 140,000 cubic metres of LNG, equivalent to around 3 billion cubic feet.
Energy officials noted that this single cargo would not be sufficient to operate four RLNG-based power plants at full capacity. These plants collectively require about 720mmcfd of RLNG to produce roughly 4,800MW of electricity when running at full load.
The government had initially invited bids for three LNG cargoes but opted to procure only one immediate shipment to help reduce load shedding during peak demand hours. Two additional cargoes scheduled for May were rejected due to higher price offers.
For the cargo arriving between April 27 and 30, TotalEnergies submitted the lowest bid at $18.88 per mmbtu, later revising it down to $18.4 per mmbtu, which was accepted by authorities.
In the case of the second cargo, scheduled for May 1–7, Vitol Bahrain offered the lowest rate at $18.54 per mmbtu. For the third shipment, due May 8–14, OQ Trading quoted the most competitive price at $17.997 per mmbtu, while Vitol Bahrain also submitted an alternative bid of $18.74 per mmbtu.
Officials have raised concerns that LNG suppliers may be engaging in coordinated pricing practices, as bid rates remain significantly higher than the Asian benchmark, the Japan Korea Marker (JKM), which is currently around $16.41–$16.47 per mmbtu.
The duration of the imported LNG supply will depend on daily consumption levels. At 100 mmcfd, the cargo would last around 30 days; at 200 mmcfd, about 15 days; and at 300 mmcfd for power generation, it would be exhausted within roughly 10 days.
Authorities also said future LNG procurement will depend heavily on geopolitical conditions, particularly developments linked to the Strait of Hormuz. Pakistan had expected four LNG shipments from Qatar, but these were delayed due to regional tensions, uncertainty over access to the Strait, and shipping risks.
Amid high international prices and stalled negotiations involving Iran and the United States, Pakistan is also considering alternative arrangements with Azerbaijan’s SOCAR. Under an existing agreement with Pakistan LNG Limited, SOCAR can offer one distressed LNG cargo per month, subject to acceptance by Pakistan.
However, officials pointed out that such distressed cargoes are currently unavailable due to strong global demand. SOCAR has nevertheless indicated, as recently as five days ago, that it remains prepared to supply LNG if Pakistan moves forward.
Any potential deal would be benchmarked against spot market rates, currently around $16.41–$16.47 per mmbtu, with Pakistan aiming for a negotiated range of $17 to $17.3 per mmbtu to secure more affordable supplies.
Officials added that if geopolitical uncertainties continue, Pakistan may avoid further spot LNG purchases through competitive bidding, given persistently high international prices.