Pakistan Purchases Expensive LNG as Strait of Hormuz Disruptions Continue
4 days agoAt a glance
- Pakistan has purchased a shipment of liquefied natural gas (LNG) at approximately double its usual contract rate due to ongoing supply disruptions from Qatar through…
- (PLL) bought the cargo from TotalEnergies SE for delivery between July 10-11.
- The agreed price was $17.37 per million British thermal units, secured in a tender that closed on Friday.
Story so far: Pakistan has purchased a shipment of liquefied natural gas (LNG) at approximately double its usual contract rate due to ongoing supply disruptions from Qatar through… (PLL) bought the cargo from TotalEnergies SE for delivery between July 10-11.
Pakistan has purchased a shipment of liquefied natural gas (LNG) at approximately double its usual contract rate due to ongoing supply disruptions from Qatar through the Strait of Hormuz.
State-owned Pakistan LNG Ltd. (PLL) bought the cargo from TotalEnergies SE for delivery between July 10-11. The agreed price was $17.37 per million British thermal units, secured in a tender that closed on Friday.
This marks the country’s second spot gas procurement in two weeks as it seeks to replace cancelled Qatari supplies affected by transit issues in the Persian Gulf.
The Strait of Hormuz, a critical waterway between Oman and Iran, is essential for global energy trade. Before recent conflicts, it served as the transit route for about one-fifth of the world’s crude oil and LNG supplies.
In early May, PLL had rejected offers for two LNG cargoes, hoping that easing regional tensions would lower spot prices and allow stranded Qatari shipments to resume. Following this, a new tender was issued.
The purchase comes as Iran has reportedly announced it will begin charging service fees for ships passing through the Strait of Hormuz.
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