Pakistan's Energy Crisis Set to Ease as Qatari LNG Breaks Through Hormuz

2:12 AM ETDeveloping

World Desk

In Short: Pakistan is expected to receive Qatari liquefied natural gas (LNG) shipments, potentially easing its energy crisis after Iran's strikes damaged Qatar's Ras Laffan LNG hub.

Pakistan has been struggling to maintain stable energy supplies, with costs for power generation soaring and frequent rolling blackouts becoming a common occurrence.

Following damage to Qatar's Ras Laffan LNG hub from Iranian strikes, the country declared force majeure on its exports, leading to higher LNG prices for Pakistan.

Pakistan LNG Limited faced difficulties in securing LNG at acceptable prices, with a recent tender receiving only one bid at a price of $27 per million British thermal units.

The situation has forced Pakistan to turn to spot LNG markets, where prices have been significantly higher, with costs increasing by 38% year-over-year.

The arrival of Qatari cargoes is anticipated to provide some relief, as these shipments could help address the energy shortfall and reduce the financial burden on the country.

What's still developing

Pakistan’s Energy Crisis Set to Ease as Qatari LNG Breaks Through Hormuz What I Cover Irina Slav has been writing about global energy markets since 2007, covering the oil and gas industry, energy security, commodities, and the… Pakistan has been struggling to keep the lights on after Qatar declared force majeure on its exports following Iranian strikes that caused damage to its Ras Laffan LNG hub.
This is three times higher than pre-war LNG prices that Pakistan was paying.
“The international LNG price is around $23.18 per MMBtu, whereas the bid received was $26.969 per MMBtu. The price was considered too high, so a fresh tender has been issued,” a senior Pakistan LNG Limited executive said, as quoted by Pakistani media earlier this month.
As of July, these were 38% higher than a year earlier and since then have likely one even higher as LNG on the spot market has also trended higher while QatarEnergy announced an extension of its force majeure.
The country has issued several prompt liquefied gas delivery tenders over the past three months, consistently paying $20 per million British thermal units and more—a tender earlier this month ended without an order, after Pakistan’s state gas company only received one offer, whose price was $27 per million British thermal units.

Sources

Crude Oil Prices Today | OilPrice.comlink