Islamabad: Pakistan has purchased another liquefied natural gas (LNG) cargo from the international spot market as supply disruptions from its key supplier, Qatar, continue following the Iran-Israel conflict.
According to Bloomberg, state-owned Pakistan LNG Limited (PLL) secured an LNG cargo from TotalEnergies for delivery on July 10-11 at a price of $17.37 per million British thermal units (mmBtu). The purchase followed a tender that closed on Friday and marks Pakistan’s second spot LNG acquisition within the past two weeks.
The latest procurement comes as Pakistan seeks to replace LNG shipments that could not be delivered under its long-term agreements with Qatar due to export disruptions during the regional conflict. Although shipping activity through the Strait of Hormuz has resumed following the US-Iran ceasefire, Qatar’s LNG exports have not yet returned to normal levels.
Pakistan has traditionally depended on long-term LNG supply contracts with Qatar, making the country particularly vulnerable to supply interruptions.
During the conflict, disruptions to regional shipping and attacks on energy infrastructure forced Pakistan to source LNG from alternative suppliers, including the United States, Oman, Mozambique, Nigeria, and the Republic of the Congo, according to Bloomberg.
The newly purchased spot cargo costs nearly twice as much as LNG supplied under Pakistan’s long-term contract with Qatar, highlighting the financial impact of the ongoing supply constraints. The higher import cost is also expected to increase pressure on the country’s energy sector and fuel import bill.
