Pakistan's Power Costs Soar on Record-High LNG Prices

Pakistan's power generation costs skyrocketed by 38% in July compared to the same month last year, mainly due to record-high spot liquefied natural gas (LNG) prices.

The country paid as much as $21.88 per million British thermal units (MMBtu), the highest price since February when global LNG flows were disrupted by the Iran war.

Total electricity generation also increased in July, rising 7% from a year ago and reaching the second-highest level for any July month on record.

The high cost of power generation was driven by a higher mix of RLNG (re-gasified liquefied natural gas) and furnace oil, as well as reliance on spot RLNG cargoes and elevated oil prices.