Pakistan Rebuffs Expensive LNG Cargo Amid Worsening Energy Crisis

Pakistan's power crisis worsens as it rejects an expensive LNG cargo offered by BP, citing the high price of $27 per million British thermal units (mmBtu). This price is nearly three times what Pakistan paid for a similar cargo in July, and significantly higher than the current international market rate of around $23.18 per mmBtu.

The country's energy crisis has been compounded by the recent disruption to QatarEnergy's LNG exports due to the blockade of the Strait of Hormuz. As a result, Pakistan has had to resort to spot markets for LNG supplies, resulting in significantly higher prices. The government has implemented rolling blackouts in response to the shortage, with some parts of Karachi experiencing up to 24 hours without power.

A new tender will be issued today seeking an additional 140,000 cubic meters of natural gas, but it remains to be seen whether Pakistan can secure a more favorable price. The country's energy costs have surged by 38% in July from the previous year due to the high LNG prices and loss of supply under long-term deals.