Pakistan has purchased an emergency liquefied natural gas (LNG) cargo from BP at a premium above regional spot prices as continued disruptions in the global LNG market tighten supplies and drive up costs.
According to a Bloomberg report, Pakistan LNG Limited (PLL) secured the cargo for prompt delivery at US$16.74 per million British thermal units (mmBtu), approximately US$1 higher than prevailing Asian spot LNG prices, which were trading in the mid-US$15 per mmBtu range.
The emergency purchase comes as Pakistan moves to strengthen its gas supplies following disruptions to LNG exports from the Middle East that have reduced global availability and increased prices.
Pakistan has traditionally relied on long-term LNG imports from Qatar, but recent supply constraints have forced the country to source additional cargoes from the international spot market.
Between April and June, Pakistan LNG Limited floated four tenders for prompt LNG deliveries. Several of those tenders failed after suppliers quoted prices that exceeded the government’s acceptable range.
Earlier this year, Pakistan also imported an LNG cargo from the United States at US$18.40 per mmBtu, reflecting the elevated cost of securing spot supplies during periods of market volatility.
The latest purchase follows a tender issued by Pakistan LNG Limited seeking an emergency cargo for delivery between June 30 and July 4 to help ensure uninterrupted gas supplies.
Also read: OGRA lowers LNG prices
