Contracted Qatari LNG costs $14–$15 per MMBtu, compared with spot-market prices of up to $30, according to Ministry of Energy sources.
ISLAMABAD WEB DESK: Pakistan has received its second liquefied natural gas (LNG) cargo from Qatar in October, with supplies from the shipment already entering the national gas network, according to Ministry of Energy sources cited by Geo News on Thursday.
The delivery comes as the government seeks to maintain domestic gas supplies while avoiding expensive purchases from the international spot market, where LNG prices can reach $30 per million British thermal units (MMBtu), the sources said.
Qatari LNG costs less than spot-market supplies
According to the ministry sources, LNG imported under Pakistan’s existing agreement with Qatar costs approximately $14 to $15 per MMBtu.
By comparison, spot-market purchases can cost up to $30 per MMBtu, making contracted Qatari supplies significantly cheaper at the prices cited by officials.
The government is therefore seeking to rely on available contracted shipments wherever possible to reduce the cost of meeting the country’s energy requirements.
First LNG cargo arrived earlier in October
Pakistan received its first LNG shipment of October on October 14, when the vessel Al-Areesh berthed at Engro’s LNG terminal and regasification operations resumed.
The shipment restored supplies of approximately 150 million cubic feet per day to the national gas network.
The arrival of the second cargo provides another source of imported gas, although the extent of any improvement in overall availability will depend on supply volumes, demand and subsequent deliveries.
Winter demand remains a key concern
Pakistan faces additional pressure to secure adequate gas supplies ahead of winter, when household demand typically increases. Imported LNG is used to supplement domestic production and supports different parts of the economy, including power generation and industry.
Disruptions to international LNG supplies and uncertainty surrounding shipping routes have increased concerns about the availability and cost of replacement cargoes. Pakistan has been trying to avoid additional spot-market purchases unless they become necessary.
The second October shipment is a positive development for supply planning, but it does not by itself establish that Pakistan’s winter gas requirements have been fully secured.
