Pakistan’s RLNG market faced strong cost pressure in May 2026. Prices increased sharply due to higher global energy rates and changes in import sources. The overall trend showed rising dependence on expensive spot cargoes.
According to data from Arif Habib Limited, the weighted average RLNG price on the SNGPL network increased by around 42 percent year-on-year. This reflects significant pressure in the RLNG supply chain during the month.
The main reason behind the increase was higher international oil prices. Another key factor was the inclusion of a spot LNG cargo. This made the overall import basket more expensive. Higher terminal and handling charges also added to the cost.
On the supply side, Pakistan State Oil reported lower RLNG volumes during May. Supply dropped to nearly 242 mmcfd. This decline also tightened market conditions and supported higher prices.
The country mainly relied on long-term LNG contracts during the month. Three cargoes were imported under these agreements. These were priced at about 10.20 percent slope to Brent crude oil. This pricing is relatively more stable and predictable for RLNG imports.
However, the RLNG mix also included a costly spot cargo. Pakistan LNG Limited imported one spot LNG cargo of around 74 mmcfd. This cargo was priced at 20.9 percent slope to DES (Delivered Ex Ship). The higher slope reflects stronger global market rates and increased volatility.
The addition of spot LNG increased the average cost of RLNG significantly. Spot purchases are usually more expensive than long-term contracts. This shift directly impacted the overall pricing trend in Pakistan.
Market analysts say the RLNG price increase is linked to global energy conditions. Rising oil prices and tight LNG supply in international markets played a key role. Pakistan’s import strategy also influenced the final cost structure.
The rise in RLNG prices may continue to affect industrial and power sector users. These sectors depend heavily on stable gas pricing for operations. Any further increase in spot imports could add more pressure in the coming months.
In other related news also read Pakistan Faces Severe Gas Shortage Amid Sharp RLNG Decline
Overall, the RLNG market in May 2026 showed clear cost escalation. Higher global prices and a shift toward spot procurement were the main drivers behind the increase.
