Pakistan secures 10 LNG cargoes at cost of $14.5 mmbtu

The country has purchased around 10 liquefied natural gas (LNG) cargoes at a weighted average cost of $14.5 mmbtu (Metric Million British Thermal Units) for the current month, which is almost 75 percent less as compared to the existing rate of $60/mmbtu in the international spot market.

Minister for Energy Hammad Azhar said this in a tweet on Thursday, adding: “LNG spot cargoes have touched $60/mmbtu in international markets”.

“However Pakistan’s weighted average of 9-10 cargoes arriving in March is priced only at $14.5/mmbtu of long term and spot cargoes purchased. This is despite 2 defaults of long term cargoes,” added the minister.

Hammad said the ‘most competitive cargoes’ are arriving under the contracts signed by the Pakistan Tehreek-e-Insaf (PTI) government.

Elaborating the default of cargoes, he said there were two defaults on part of those traders with whom the previous government of the Pakistan Muslim League-Nawaz (PML-N) had signed the contracts.

“This will be their 8th default/non-performance in just a 6 months period. Last spot purchase was of $25/mmbtu on February 22. Today’s price is $60/mmbtu.”

Meanwhile in another tweet, Hammad Azhar said that protecting people from the effects of global inflation is the government’s topmost priority. He said that the government has decided to make the subsidy package of Rs5 per unit on electricity more efficient and he will soon announce the details in this regard. 

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