Pakistan purchased its most expensive liquefied natural gas shipment in about four years, as the country grapples with an energy shortage due to the effective closure of the Strait of Hormuz.
State-owned Pakistan LNG Ltd. bought a cargo for June 6-7 delivery from BP Plc via a tender that closed on Thursday, according to traders with knowledge of the matter. The South Asian country was forced to purchase it because a planned shipment from Qatar was canceled due to heightened tensions around the strait, the traders said.
The cargo was bought at $19.1337 per million British thermal units, which makes it the priciest LNG purchase for the South Asian country since 2022, according to traders.
Pakistan is among the hardest-hit by the conflict in the Middle East, as about a fifth of global LNG supply remains stuck behind the narrow waterway blockaded by Iran and the US. Pakistan depends on Qatar for nearly all its LNG and has seen rolling blackouts due to severe fuel shortages since the war began in late February.
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Peace talks between Iran and the US have stalled and this week saw the worst flare-up in violence across the region since a fragile ceasefire went into effect in early April, dampening optimism that the Strait of Hormuz can be reopened any time soon.
Islamabad negotiated with Iran for the passage of three Qatari LNG shipments through Hormuz over the last month, with the latest arriving in late May. While that's helped ease the country's gas shortfall, it is still receiving far fewer shipments than normal, forcing the country to dip into the expensive spot market.
Pakistan purchased its first spot shipment in about two years in April.
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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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