The cost of generating electricity from re-gasified liquefied natural gas (RLNG) reached a record high in July 2026.
According to energy experts, RLNG-based generation cost Rs 47.4 per unit during the month. The increase followed disruptions to Pakistan’s contracted LNG supplies from Qatar.
Data from the National Electric Power Regulatory Authority (Nepra) showed a sharp increase. Generation costs climbed 242% from below Rs 14 per unit in April.
Spot LNG Purchases Push Costs Higher
Experts attributed the increase to Pakistan’s growing reliance on expensive spot LNG cargoes. Pakistan LNG Limited purchased five spot cargoes for July delivery.
The purchases followed disruptions to contracted supplies from QatarEnergy. The company had declared force majeure on its LNG supply obligations in March.
Regional security disruptions contributed to the supply problems. Consequently, Pakistan turned increasingly towards the international spot market for replacement cargoes.
These purchases came at significantly higher prices than contracted supplies. As a result, RLNG-based power generation costs surged during the summer.
Costs Rise Sharply After Years of Stability
RLNG generation costs had generally remained between Rs 20 and Rs 26 per unit since 2022. However, costs began rising sharply during 2026.
The July figure marked the highest recorded generation cost for RLNG. The increase could add further pressure to Pakistan’s electricity sector.
QatarEnergy later extended the supply disruption through August. Therefore, Pakistan continued sourcing replacement LNG from international markets.
Energy experts warned that continued dependence on expensive spot cargoes could increase generation costs. The development could also place additional pressure on electricity consumers.
