Key facts
- Pakistan's power generation costs rose 38% in July year-over-year.
- The country paid record-high spot LNG prices, reaching $21.88 per MMBtu.
- Increased power output and reliance on spot LNG cargoes drove up costs.
Pakistan's Power Costs Surge 38% Amid Record Spot LNG Purchases
IN SHORT
Pakistan's electricity generation costs jumped 38% in July year-over-year, driven by record-high spot LNG prices and increased power output. The country resorted to expensive spot market purchases due to supply disruptions from Qatar and Middle East tensions.
Key Numbers
38%year-over-year increase in power generation costs
7%increase in total electricity generation in July
$21.88 per MMBtuhighest price paid for a spot LNG cargo
Who's Involved
Arif Habib Limited
local brokerage and research firm analyzing generation costs
Pakistan LNG Limited
state-controlled importer that accepted a spot cargo offer
TotalEnergies Gas & Power Limited
supplier of a high-priced spot LNG cargo
↳ Why This Matters
The substantial increase in Pakistan's power generation costs highlights the country's vulnerability to global energy market volatility and supply chain disruptions, potentially impacting inflation, economic stability, and the affordability of electricity for consumers and businesses.