KARACHI: Pakistan on Thursday received a boost to its LNG supplies after a Qatari cargo carrying 81,936 metric tonnes of liquefied natural gas docked at Port Qasim after crossing the strategically important Strait of Hormuz amid heightened regional tensions.
The LNG carrier, Al Marrouna, carrying around 81,936 metric tonnes of LNG from Qatar’s Ras Laffan terminal, transited the Strait of Hormuz on September 7 under Pakistan’s government-to-government arrangement with Qatar.
The Middle East war intensified further with Iranian-backed Houthis in Yemen launching strikes on several Saudi cities, further embroiling a US ally in the conflict, while US forces hit multiple Iranian oil tankers and Iran targeted a US base in Jordan.
After a month of calm in August, Iran and the US resumed exchanging fire in recent days, with Hormuz shipping traffic falling below the 10-day average.
Iran’s Revolutionary Guards on Tuesday attacked two US vessels and eight oil tankers in the Gulf in response to the US attack on five Iranian tankers, Iranian state media reports.
The arrival of cargo is expected to provide temporary relief to Pakistan’s power sector, which is currently facing loadshedding of between six and 12 hours in parts of the country. The cargo has been arranged at a price equivalent to 13.37% of Brent.
The successful passage of Al Marrouna is also being closely watched by international LNG markets. Its transit has eased some concerns over a prolonged disruption of Qatari LNG supplies through the Strait, putting bearish pressure on Asian benchmark Platts JKM and Northwest European LNG prices.
Meanwhile, Pakistan LNG Limited (PLL) has cancelled a spot LNG tender floated on September 5, which was scheduled to be opened on September 8.
The latest Qatari shipment is particularly significant as it is reportedly the first Qatari LNG cargo to exit the Persian Gulf since tensions surrounding the Strait of Hormuz escalated in July. The worsening security situation had raised concerns over shipping disruptions and pushed up insurance costs for vessels navigating the strategic waterway.
For Pakistan, the successful transit offers short-term comfort but does not remove the risks surrounding future LNG supplies. Any renewed disruption in the Strait of Hormuz could put pressure on Pakistan’s energy security, LNG procurement costs and electricity generation.
Qatar, meanwhile, has sought to reduce its exposure to the Hormuz chokepoint by maintaining diplomatic channels with Iran and strengthening bilateral ties across the region, while continuing its role as a key LNG supplier and regional mediator.
