Key facts
- Pakistan faces an LNG bill exceeding $1 billion for the winter.
- The country plans to purchase 10 LNG cargoes from the spot market.
- Spot LNG prices in Asia have reached three-year highs.
- Spot LNG cargoes are double the price of term supplies from Qatar.
- Disruptions to Qatari term supply are forcing Pakistan to the spot market.
- Pakistan sourced 99% of its 2025 LNG imports from Qatar.
Pakistan is bracing for a winter LNG bill exceeding $1 billion as it grapples with soaring spot prices and disruptions to its primary Qatari term supply. The country intends to purchase 10 LNG cargoes from the spot market, a move that will double the price compared to its usual imports from Qatar, according to local daily Tribune.
These additional spot purchases are necessary to ensure winter supplies, as term supplies from Qatar have been impacted. Before the recent disruptions, Pakistan relied heavily on Qatari term supply. However, following direct assurances from Iran that vessels could safely transit the Strait of Hormuz, some Qatari LNG cargoes have reached Pakistan in recent months. Nevertheless, term supplies remain cheaper than the spot LNG cargoes, for which Asian and European buyers compete ahead of winter, driving up prices.
Pakistan has faced significant challenges in maintaining its power supply since Qatar declared force majeure on its exports in March, following Iranian strikes that damaged its Ras Laffan LNG export hub. This has compelled Pakistan to turn to the spot LNG markets and pay substantial premiums for shipments. Wood Mackenzie noted that Pakistan has been the most affected market in South Asia by the lack of Qatari supply. The firm also indicated that the Strait of Hormuz closure reduced Pakistan-bound LNG by up to 0.4 million tons per month between March and November 2026, leading to demand destruction and a reliance on withheld domestic gas.