Pakistan Faces $1 Billion LNG Bill This Winter
Pakistan will have to pay in excess of $1 billion to secure LNG supply for the winter months, as spot prices soar amid massive disruptions to Qatari term supply. The price tag will be fueled by the spot LNG prices in Asia surging to three-year highs and the plans of the Pakistani government to import 10 LNG cargoes from the spot market, at double the price at which LNG is being imported from…
Pakistan will face a hefty $1 billion bill to secure natural gas supply for the upcoming winter, driven by soaring spot prices and disruptions to Qatari deliveries. The Pakistani government plans to import 10 LNG cargoes from the spot market, at double the price of Qatari imports, to ensure winter supplies between November 2026 and February 2027.
This shift is necessary due to the lack of term supply from Qatar, which has been disrupted since Iran struck its export hub in March. While some Qatar LNG has reached Pakistan, it has been costly, pushing up power generation costs. Prior to the conflict, Pakistan relied heavily on Qatari term supply, but now faces high spot market prices.
The Strait of Hormuz closure has reduced Pakistan-bound LNG by up to 0.4 million tonnes per month since March, forcing the country to curtail demand, switch fuels, and release domestic gas. This has led to significant gas demand destruction of over 2.5 million tonnes.
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