Higher-priced shipment highlights growing energy costs amid delayed recovery in regional exports
ISLAMABAD: Pakistan has purchased another liquefied natural gas (LNG) cargo from the international spot market as supply disruptions from its primary supplier, Qatar, continue following the Iran-Israel conflict.
According to Bloomberg, state-owned Pakistan LNG Limited (PLL) secured the cargo from TotalEnergies for delivery on July 10-11 at a price of $17.37 per million British thermal units (mmBtu). The acquisition followed a tender that closed on Friday and marks Pakistan’s second spot LNG purchase within the past two weeks.
The latest procurement comes as Islamabad works to replace LNG shipments that were not delivered under its long-term contracts with Qatar after regional hostilities disrupted exports and shipping operations.
Supply challenges continue despite improving shipping
Although maritime traffic through the Strait of Hormuz has gradually recovered following the US-Iran ceasefire, LNG exports from Qatar have yet to return to normal levels. As a result, Pakistan has continued sourcing cargoes from the spot market to maintain domestic gas supplies.
Pakistan has traditionally relied heavily on long-term LNG agreements with Qatar, making the country particularly vulnerable when contractual shipments were interrupted during the regional crisis.
During the conflict, disruptions to energy infrastructure and shipping routes forced Pakistan to seek alternative LNG supplies from several countries, including the United States, Oman, Mozambique, Nigeria and the Republic of the Congo, according to Bloomberg.
Higher costs increase financial pressure
The newly purchased cargo carries a price roughly double that of Pakistan’s long-term LNG imports from Qatar, underscoring the financial burden created by supply disruptions.
Energy analysts say the increased procurement costs are expected to place additional pressure on Pakistan’s energy sector and may eventually affect domestic gas pricing if elevated spot market purchases continue.
Authorities are closely monitoring the recovery of Qatari exports while continuing efforts to secure reliable fuel supplies through a combination of long-term contracts and short-term market purchases to meet the country’s energy demand.
