Key facts
- Pakistan LNG purchased an urgent LNG cargo for prompt delivery, paying a premium of approximately $1 per mmBtu.
- The cargo was sold by BP for $16.74 per mmBtu, compared to regional spot prices in the mid-$15s.
- The purchase highlights ongoing disruptions to LNG flows from the Persian Gulf due to regional conflicts and tensions.
- Pakistan has faced energy crises and high inflation due to previous disruptions and the cost of alternative supplies.
- The country issued a tender for the urgent cargo with offers due June 29 for delivery between June 30 and July 4.
Pakistan LNG has purchased an urgent liquefied natural gas cargo for prompt delivery, paying a premium of approximately $1 per million British thermal units above regional spot prices. The state gas company paid $16.74 per mmBtu for the cargo, sold by BP, highlighting continued disruptions in LNG flows out of the Persian Gulf despite diplomatic efforts.
Pakistan has historically relied on Qatar's term LNG supply, but regional conflicts have impacted this, leading to an intensifying energy crisis with power outages and fuel rationing. The country has also struggled to afford alternative supplies due to war-related price premiums. Between April and June, Pakistan launched four tenders for prompt LNG cargoes, with some deals failing due to high prices.
Pakistan's inflation soared by 11.7% in May, with core inflation also rising significantly. The country received its first LNG cargo in two months in May from the United States for $18.40 per mmBtu. Earlier this month, Pakistan LNG signaled urgent demand for more liquefied gas, issuing a tender with offers due June 29 for delivery between June 30 and July 4.