Pakistan LNG Ltd reissues LNG tender amid electricity shortage
State‑owned Pakistan LNG Ltd (PLL) has relaunched its emergency LNG tender, seeking a cargo to arrive by 12 September after cancelling an earlier request for delivery by 8 September.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Power sector gains from potential LNG supply; Buy bias on HUBC, KAPCO.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- PowerPositively affected
Companies
Mentions in This Briefing
Sectors: Power — Positive · Buy bias. PSX tickers: HUBC, KAPCO. Power sector gains from potential LNG supply; Buy bias on HUBC, KAPCO.
Full Story
Open on Business Recorder## Background
Pakistan’s power grid is under severe stress, with recurring load‑shedding prompting the government to secure additional fuel supplies. Earlier this week PLL cancelled an emergency tender for a liquefied natural gas (LNG) shipment that was to be delivered by 8 September, citing pricing concerns.
## New tender details
On Wednesday PLL reissued the tender, now targeting a cargo that must arrive no later than 12 September. Interested suppliers have until Friday to submit their offers, according to Bloomberg. The tender seeks to obtain LNG at a price that is acceptable to the state‑owned utility while ensuring timely delivery to alleviate the current electricity crunch.
## Market implications
The re‑tender signals that the government remains committed to stabilising power generation through imported gas. Power producers that rely on gas‑fired plants, such as Hub Power Company (HUBC) and Kot Addu Power Company (KAPCO), stand to benefit if the tender results in a competitive contract. A successful deal could reduce the risk of further load‑shedding, improve plant utilisation, and support earnings for these listed power generators.
## Outlook
Analysts will watch the tender outcome closely. A competitive LNG contract could provide short‑term relief to the power sector and bolster investor confidence in related PSX stocks. Conversely, if pricing remains high, the benefit may be limited.
## Quotes
Industry sources indicated that the government is balancing cost considerations with the urgent need to secure fuel, emphasizing that “timely delivery is as critical as price” for maintaining grid stability.