Pakistan Power Generation Costs Soar to All-Time High Amid Qatar LNG Disruption

Pakistan's reliance on expensive spot liquefied natural gas (LNG) has pushed the cost of power generation from re-gasified LNG to an all-time high. According to energy experts, the country's reliance on pricey spot LNG cargoes after disruptions to contracted supplies from Qatar led to the sharp increase.

The National Electric Power Regulatory Authority (Nepra) figures show that RLNG-based generation costs jumped 242 percent from less than Rs. 14 per unit in April to Rs. 47.4 per unit in July this year. This significant spike came as Pakistan LNG Limited procured five spot cargoes for July delivery after QatarEnergy disrupted contracted LNG supplies.

The energy experts stated that the increase was a result of Pakistan's reliance on the international market at substantially higher prices, following QatarEnergy's declaration of force majeure on its LNG supply obligations in March amid regional security disruptions. The disruption was extended through August, leaving Pakistan to source replacement cargoes from the global market.