Pakistan scrambles for LNG supply as Strait of Hormuz disruption chokes supply: Report
Pakistan, which is among the hardest-hit countries by the conflict in the Middle East, is urgently seeking to buy liquefied natural gas (LNG) for delivery
Pakistan, which is among the hardest-hit countries by the conflict in the Middle East, is urgently seeking to buy liquefied natural gas (LNG) for delivery this week, as a string of attacks in the Strait of Hormuz has disrupted flows, Bloomberg reported. According to the report, state-owned Pakistan LNG has issued a tender to procure shipments for delivery between 30 June and 4 July, with offers due on Monday. About a fifth of global LNG supply remains stuck behind the narrow waterway blockaded by Iran and the US. It may be recalled that earlier this month, Pakistan purchased its most expensive LNG shipment in about four years.
Pakistan LNG Ltd bought a cargo for delivery on 6-7 June from BP Plc at $19.1337 per million British thermal units, making it the priciest LNG purchase for the South Asian country since 2022, according to Bloomberg. Energy Shortfall Pakistan has been grappling with an energy shortfall since the war disrupted shipments from its top supplier, Qatar, forcing it to purchase pricier fuel from the spot market over the past few months. At the start of this year, Pakistan had more imported LNG than it could use, Al Jazeera reported. Demand had been falling for three straight years, from a peak of 8.2 million tonnes in 2021 to 6.1 million tonnes by late 2025, as cheap solar panels flooded the market and factories cut back.
Then the war came. In March, as the Iran conflict disrupted regional energy trade, Pakistan could only import $70.2 million worth of LNG, 69% down from $226 million last year, the report said, quoting the Pakistan Bureau of Statistics. Pakistan depends on Qatar for nearly all its LNG and has been experiencing rolling blackouts due to severe fuel shortages since the war began in late February. Also Read | India slams Pakistan on claims of New Delhi's role in Karachi blasts A Qatari Oil ship was attacked in the Strait of Hormuz on Saturday, days after a Singapore-flagged container ship was hit.
Following the strikes, the Joint Maritime Information Center (JMIC), which coordinates between naval and commercial shipping, raised its threat level in the region to substantial. Transits of inbound and outbound LNG carriers through the waterway have paused since then, ship-tracking data show. That includes an empty LNG tanker that was heading into the Persian Gulf via the Strait before U-turning on Friday. It has remained in the Gulf of Oman.
The BriefWire