ISLAMABAD: Pakistan has purchased another liquefied natural gas (LNG) cargo from the international spot market as disruptions to Qatari exports through the Strait of Hormuz continue to constrain supplies, forcing the country to rely on costlier imports to meet domestic energy demand.
According to market sources, TotalEnergies SE sold a cargo to state-owned Pakistan LNG Limited (PLL) for delivery on July 10-11 at a price of $17.37 per million British thermal units (mmBtu). The cargo was secured through a spot tender that closed on Friday.
The purchase marks Pakistan’s second spot LNG acquisition within two weeks, highlighting Islamabad’s efforts to replace canceled shipments from Qatar following supply disruptions in the Gulf.
Although maritime traffic through the Strait of Hormuz has improved after the United States and Iran reached an interim peace agreement, LNG exports through the strategic waterway have yet to return to pre-conflict levels. The strait is a critical global energy corridor, handling nearly 20% of the world’s LNG trade.
Pakistan relied almost entirely on long-term LNG supply agreements with Qatar last year. However, disruptions caused by attacks on Qatari energy facilities during the recent regional conflict resulted in the cancellation of several contracted cargoes, creating supply shortages for the South Asian nation.
The interruptions have compelled Pakistan to turn to the spot market, where LNG prices are significantly higher than those under its long-term agreements with Qatar. The latest purchase, priced at $17.37 per mmBtu, is approximately double the cost of LNG imported under the country’s long-term Qatari contracts.
The continued reliance on expensive spot cargoes is expected to increase Pakistan’s import bill and place additional pressure on the country’s energy sector, which is already facing rising fuel costs and growing electricity demand.
By Bloomberg
