Pakistan is facing significant challenges in securing liquefied natural gas (LNG) supplies due to persistent disruptions in the Strait of Hormuz, a critical maritime route. These disruptions have forced the state-owned Pakistan LNG Ltd. (PLL) to frequently turn to the more expensive spot market for urgent shipments. For example, on June 30, 2026, Pakistan purchased an emergency LNG cargo from BP Plc for delivery between June 30 and July 4 at a hefty price of $16.74 per million British thermal units. This price is considerably higher than the $15 per million Btu observed for spot prices in Asia on the same day, highlighting the premium Pakistan is paying to meet its energy needs.
The country's reliance on spot purchases stems from QatarEnergy declaring force majeure in March after Iranian attacks on its facilities, halting production and making regular Qatari LNG inaccessible. This force majeure is expected to remain in effect until mid-July, compelling PLL to secure eight LNG cargoes, including five long-term agreements and three spot purchases since late April. BP Singapore Pte Limited has emerged as a key supplier, securing the latest tender with a bid of $16.7372 per MMBtu for a 140,000 cubic meter cargo.
These emergency purchases represent some of the most expensive LNG shipments Pakistan has bought in about four years. Earlier in June, Pakistan purchased a cargo for June 6-7 delivery, also from BP Plc, described as the priciest in years. The continued need for these expensive spot cargoes, despite a Pakistan-brokered peace agreement earlier in the month, underscores the severe impact of renewed US-Iran hostilities and heightened tensions in the Strait of Hormuz on Pakistan's energy security and finances. The LNG is crucial for keeping five power plants operational and ensuring energy supply to key sectors, with re-gasified LNG (RLNG) serving as the backbone of gas supplies.
