Pakistan pays highest LNG spot price since 2022

State-owned Pakistan LNG Ltd. has purchased a liquefied natural gas cargo on the spot market for delivery on July 21-22, as the country seeks to secure gas supplies amid regional disruptions. The cargo was awarded via a tender that closed on Wednesday, reflecting Pakistan’s need to quickly replace volumes affected under existing arrangements.

The agreed price of about $20.70 per million British thermal units makes this shipment Pakistan’s most expensive LNG spot purchase since 2022. The transaction marks a notable move back into the spot market at a time when international LNG prices remain sensitive to supply risks.

The decision to procure the high-priced cargo is directly linked to renewed hostilities around the Strait of Hormuz, a critical chokepoint for global energy trade. These hostilities have disrupted contracted LNG deliveries from Qatar, Pakistan’s main long-term supplier, creating an immediate shortfall in expected supply.

With contracted Qatari volumes affected, Pakistan LNG Ltd. used a competitive tender process to secure replacement cargo. The elevated price underscores the premium currently being paid by buyers who must turn to the spot market when long-term supplies are interrupted.

Paying around $20.70 per MMBtu for the July 21-22 delivery highlights the cost pressures facing Pakistan’s gas procurement strategy in the current environment. Spot purchases at such levels can increase the overall import bill and complicate planning for domestic energy pricing and availability.

The episode illustrates Pakistan’s exposure to geopolitical risks along key maritime routes and its dependence on Qatari LNG under long-term contracts. Any continued disruption around the Strait of Hormuz could force further reliance on the spot market, where prices can quickly rise when supply is tight.

While the newly purchased cargo helps address an immediate gap in supply, it does so at a significantly higher cost than Pakistan has typically paid for spot LNG since 2022. The development emphasizes the vulnerability of import-dependent gas systems to external shocks in both price and physical delivery.