Pakistan Seeks Qatar LNG Cargo Amid Soaring Spot Prices

Pakistan is scrambling to secure an additional liquefied natural gas (LNG) cargo from Qatar by August 25-26 as international spot prices surge. The government is using diplomatic and commercial channels to arrange the cargo amid heightened security concerns in the Strait of Hormuz.

The move aims to contain the impact of high LNG prices on the energy sector and power-generation costs. Spot LNG is currently trading at around $21.22 per million British thermal units (MMBtu), while the landed cost of a spot cargo in Pakistan is estimated at 22.30-23 per MMBtu.

The authorities are reluctant to procure another cargo through the normal bidding process and are instead prioritizing supplies from Qatar. Consultations are underway with regional and international stakeholders to facilitate the safe movement and arrival of LNG cargoes.