Pakistan seeks Qatar LNG cargo to avoid costly spot purchases

Pakistan is pressing to secure an extra LNG cargo from Qatar by August 25-26, according to The News, as spot prices rise and officials want to avoid more costly purchases on the open market. Authorities are relying on diplomatic and commercial channels for the shipment, with security concerns in the Strait of Hormuz adding pressure. Spot LNG trades near $21.22 per MMBtu, while a spot cargo landed in Pakistan is put at 22.30-23 per MMBtu, so officials are wary of the normal bidding route.

Officials are also talking with partners in the region and beyond to keep shipments moving safely. The National Coordination and Monitoring Committee is reportedly communicating with Qatar, Iran and the United States on passage and delivery arrangements. At present the PGPC and Engro LNG terminals each handle about 130 mmcfd, so the two together feed roughly 260 mmcfd into the country's gas network.

Power generation costs have already risen, with RLNG-based electricity averaging Rs47.38 per unit in July, up from roughly Rs35.5 in June. RLNG supplied 1,629 GWh, or 10.78% of July's 14,501 GWh, yet its Rs77.198 billion cost formed part of the Rs139.37 billion total generation bill. Officials said the next carrier's berthing schedule will be fixed after August 25-26, which makes the timing of that cargo important for gas and power planning.