State importer secures July cargo at elevated prices after term supplier Qatar fails to deliver amid geopolitical tensions.
Pakistan is purchasing liquefied natural gas at record-high spot prices after disruptions to its term supply from Qatar. The renewed closure of the Strait of Hormuz and stranded cargoes have forced the country to issue multiple tenders for July delivery, accepting premium offers to secure energy supplies.
State-controlled Pakistan LNG Limited recently awarded a spot cargo to TotalEnergies Gas & Power Limited for delivery on July 27-28. The move follows a series of tenders this month, reflecting urgency as domestic demand rises amid supply constraints. Prior term agreements with Qatar had provided stable pricing, but geopolitical risks have upended those arrangements.
The shift to spot markets exposes Pakistan to higher volatility and costs, potentially straining its energy budget. Analysts note similar disruptions in 2022 led to prolonged outages, raising concerns about long-term energy security.