Pakistan Scrambles to Secure Qatar LNG Cargo Amid Surging Spot Prices

Pakistan is racing to secure another liquefied natural gas (LNG) cargo from Qatar by August 25-26, as international prices have surged, making spot LNG purchases increasingly expensive. The country is seeking to avoid buying expensive spot LNG amid a sharp increase in global market rates.

The current landed cost of a spot LNG cargo in Pakistan is estimated at $22.30-$23 per million British thermal units (MMBtu), with prices reaching as high as $21.22 per MMBtu. The government is reluctant to procure another spot cargo through the normal bidding process due to the steep prices.

Pakistan's authorities are in contact with Qatar, Iran, and the United States regarding arrangements connected with the safe passage and delivery of LNG cargoes. Securing a Qatar cargo will help Pakistan reduce its dependence on the expensive spot LNG market.