Pakistan skips costly LNG bids amid hopes of easing US-Iran tensions

Pakistan has decided not to proceed with two LNG spot cargo purchases after signs of easing tensions in the Middle East raised hopes for the restoration of smoother energy supplies from Qatar, a report by Business Recorder said on Friday.

Pakistan LNG Limited reportedly withdrew from awarding emergency tenders for two LNG shipments scheduled for delivery later this month at Port Qasim in Karachi. The cargoes were expected between May 12-14 and May 24-26.

According to international market reports, the move came after assessments that the standoff involving the US and Iran may be cooling down, potentially reducing risks around the Strait of Hormuz and allowing regular Qatari LNG shipments to continue uninterrupted.

The decision carries some risk for Pakistan, which has been facing gas shortages and power disruptions. However, long-term LNG imports from Qatar remain significantly cheaper than spot market purchases, making the government cautious about buying expensive emergency cargoes.

The development also follows recent diplomatic engagement between Shehbaz Sharif and Mohammed bin Abdulrahman Al Thani, during which both sides discussed regional stability and ongoing peace efforts in the Middle East.