Pakistan Secures Second Qatari LNG Cargo Through Hormuz After Iran Deal

Pakistan is on the verge of receiving a second shipment of liquefied natural gas (LNG) from Qatar, following negotiations to ensure the safe passage of the cargo through the Strait of Hormuz, according to sources familiar with the deal. This would be the second LNG cargo Pakistan has received in September after some carriers managed to navigate the Persian Gulf earlier this month.

The most recent LNG shipment cleared the Strait of Hormuz this weekend and is expected to arrive in Pakistan by Tuesday, based on ship-tracking data from Bloomberg.

Pakistan's energy crisis has been exacerbated by the ongoing power shortages, prompting the country to negotiate directly with Iran for safe passage for LNG shipments. In May, Pakistan had also successfully negotiated safe passage for an LNG cargo with Iran as it sought to secure gas and prevent blackouts. Prior to the conflict, Pakistan largely relied on Qatari term supply for LNG, but the war has forced the South Asian nation to turn to expensive spot purchases, significantly increasing its power generation costs.

Since Qatar declared force majeure on its LNG exports following Iranian attacks on its Ras Laffan LNG export hub, Pakistan has struggled to maintain a stable power supply. The country has been forced to purchase LNG on the spot market at premium prices, with the latest Qatari LNG shipment alleviating Pakistan's energy crunch and avoiding an additional costly spot purchase.

In recent weeks, some LNG cargoes from Qatar and the United Arab Emirates have managed to transit the Strait of Hormuz or engage in ship-to-ship transfers offshore Oman, indicating that Persian Gulf LNG exporters are intensifying efforts to push through the chokepoint after months of near-total shipment halt.