Pakistan Receives 3rd Qatar LNG Cargo in October

Pakistan has welcomed its third liquefied natural gas (LNG) shipment from Qatar this October, offering some respite to the nation's gas supply network as tensions persist in the Strait of Hormuz. The vessel Shandong Redwood docked on October 28 at the Engro Elengy LNG terminal, delivering a cargo priced at 13.37 percent of Brent. The LNG was directed to Engro Elengy Terminal Limited's (EETL) floating storage and regasification unit (FSRU), named Exquisite, for conversion back to gas.

This addition follows two prior LNG deliveries in the same month. The inaugural shipment, Al-Areesh, arrived on October 13, while the second, Ejnan, landed on October 21 and was taken to the Pakistan GasPort Limited (PGPL) terminal for regasification. Although this third cargo provides temporary relief, Pakistan's gas situation is expected to worsen as domestic demand soars with the arrival of winter.

Authorities anticipate procuring between three to four LNG cargoes in November, with requirements to surge dramatically in December and January. In December, Pakistan will need nine cargoes, and in January, 11 cargoes to meet its energy requirements. The onset of winter is anticipated to strain the gas supply system, especially in the northern regions.

In these areas, domestic gas demand in SNGPL's jurisdiction, covering Punjab and Khyber Pakhtunkhwa, is expected to spike from around 500 million cubic feet per day (mmcfd) to 1,500 mmcfd. In SSGC's service areas, comprising Sindh and Balochistan, demand is projected to rise from approximately 300 mmcfd to between 500 and 600 mmcfd.

Current system data indicates that SNGPL's system line pack stands at 4,695 million cubic feet.