finance
Pakistan Buys Spot LNG Cargo at $20.70 per MMBtu, Plans Up to Seven More Purchases
State-controlled Pakistan LNG Ltd purchased a cargo at $20.70 per MMBtu for early next week delivery. The purchase came via a tender that closed Wednesday amid halted shipments from Qatar through the Strait of Hormuz.
Jul 16, 11:57 AM·1m read11 sources
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Pakistan LNG Ltd bought one liquefied natural gas cargo on the spot market at about $20.70 per million British thermal units for delivery early next week. Traders familiar with the deal said the price is the highest Pakistan has paid since 2022. The state-owned importer secured the cargo through a tender that closed Wednesday.
Pakistan LNG issued a second such tender in as many weeks after renewed hostilities stopped LNG tankers from exiting the Strait of Hormuz for several days. Unnamed sources told Bloomberg that Pakistan plans to buy at least one more spot cargo for July delivery and as many as six cargoes for August delivery.
The country has historically received nearly all its LNG from Qatar under long-term fixed contracts.
The latest purchases put Pakistan on track to procure the most spot-market cargoes in a single month since the Iran war began. The re-escalation in the strait has forced the South Asian nation to replace term supplies from Qatar with more expensive spot replacements.
