Pakistan’s LNG worry deepens as crisis hits homes

Pakistan is grappling with a worsening electricity crisis following the rejection of an emergency liquefied natural gas (LNG) shipment at significantly higher prices. State-owned Pakistan LNG Ltd. deemed a tender offer from BP Plc at $27 per million British thermal units (MMBtu) as too expensive and may issue it again later. This decision comes as the country faces mounting pressure to balance fuel imports and power demand, particularly during the evening hours when solar power generation declines.

The crisis has been exacerbated by the ongoing US-Iran conflict, which has disrupted LNG flows through the Strait of Hormuz. Despite efforts to diversify its energy mix, Pakistan remains heavily reliant on LNG to meet its electricity needs, especially after sunset. The government's rejection of the LNG offer highlights the delicate balance between affordability and reliability in the country's energy system.