Qatari LNG Cargoes Arrive in Pakistan Amid Energy Crisis
Pakistan's energy crisis is set to ease as tankers carrying Qatari liquefied natural gas (LNG) are expected to arrive in the country this month. The first cargo is anticipated to reach Pakistan as early as Thursday, according to Bloomberg, citing ship-tracking data.
The arrival of these shipments comes after Qatar declared force majeure on its exports following Iranian strikes that damaged its Ras Laffan LNG hub. As a result, Pakistan has been forced to rely on spot LNG markets and pay high premiums for occasional shipments. Qatar was the largest supplier of LNG to Pakistan under long-term contracts.
Pakistan has issued several prompt liquefied gas delivery tenders over the past three months, with prices consistently above $20 per million British thermal units (MMBtu). A tender earlier this month ended without an order after only one offer was received, priced at $27 per MMBtu, nearly three times pre-war LNG prices.
The Qatari cargoes are expected to help alleviate the energy crisis in Pakistan, where power generation costs have soared due to the gas crunch and rolling blackouts have become a common occurrence. As of July, these costs were 38% higher than a year earlier, and with LNG prices on the spot market also trending higher, it is likely that they will continue to rise.