Pakistan plans additional LNG imports amid Hormuz tensions

ISLAMABAD: Pakistan has decided to import additional LNG as supply from Qatar is affected due to tension in the Strait of Hormuz.

According to the details, there is a fear of increasing tension in the Strait of Hormuz and LNG supply from Qatar being affected, in view of which Pakistan has decided to import additional LNG.

The Bloomberg report said that the government will purchase at least one additional LNG cargo from the spot market during July, while preparations are underway to acquire six more LNG cargoes for August.

The report said that Qatar is the largest supplier of LNG to Pakistan under a long-term contract, however, the government is making alternative arrangements in view of concerns about possible supply disruption due to tension in the Strait of Hormuz.

Purchasing LNG from the spot market can prove to be relatively expensive for Pakistan. According to the report, Pakistan has purchased an LNG cargo from the spot market for July this week at $20.69 per MMBtu.

According to energy experts, importing additional LNG could help maintain the country’s gas supply, but it is also likely to increase import costs.