KARACHI: Pakistan has received its second liquefied natural gas (LNG) cargo from Qatar this month, with supplies from the shipment already entering the country’s gas network, Ministry of Energy sources said on Thursday.
The shipment comes as the government seeks to maintain domestic gas supplies while avoiding expensive purchases from the international spot market, where LNG prices can reach $30 per million British thermal units (MMBtu), according to the sources.
LNG supplied under Pakistan’s existing agreement with Qatar costs around $14 to $15 per MMBtu, nearly half the reported spot-market rate, they said.
The sources added that the government was making efforts to avoid purchasing LNG at higher prices and was relying on contracted Qatari shipments to meet the country’s energy needs.
Pakistan received its first LNG cargo of October on October 14, when the vessel Al-Areesh arrived at Engro’s LNG terminal. Regasification began following its arrival, restoring supplies of approximately 150 million cubic feet per day to the national gas network, according to earlier reports.
The latest delivery comes amid uncertainty surrounding LNG imports following disruptions to regional energy supplies and shipping routes. QatarEnergy declared force majeure in March after damage to its Ras Laffan facility during the regional conflict affected contracted supplies to several customers, including Pakistan.
The supply disruptions have raised concerns about Pakistan’s ability to meet gas demand as winter approaches. The country depends on imported LNG to supplement domestic production and provide fuel to power plants and other consumers.
Pakistan has been exploring options to secure additional cargoes and strengthen its energy supplies. However, elevated international prices could increase import costs if contracted shipments prove insufficient to meet demand.
