Pakistan Secures Safe Passage for LNG Shipment with Iran Deal

Pakistan has secured safe passage for at least one liquefied natural gas (LNG) shipment from Qatar through a deal with Iran, aiming to alleviate its deepening energy crisis.

The LNG tanker, Al Areesh, had been idling in the Persian Gulf since early July and crossed the Strait of Hormuz on Thursday after its transponders were switched on, signaling Pakistan as its destination.

This deal could potentially cover other cargoes, according to a person with knowledge of the matter. The arrangement comes as Pakistan has leveraged its diplomatic channels to act as an intermediary in talks between the US and Iran, earlier using those ties to negotiate for safe passage of several LNG cargoes.

Pakistan's reliance on Qatar for fuel has been disrupted due to the ongoing war, leading to rolling blackouts in parts of the country. The South Asian nation has had to pay over $400 million to procure LNG shipments from spot markets since the conflict began in late-February.