MM News

ISLAMABAD: Pakistan has no money to buy Liquefied Natural Gas (LNG) despite the fact that the Asian spot LNG prices continued to decline this week and reached their lowest level since July 2021.

northeast Asia was $14.50 per million British thermal units (mmBtu), a decrease of $0.50 (or 2.3%) over the previous week.

Costs have decreased by more than 48% year to date and by almost 79% from the peak of $70.50/mmBtu in August 2022.

Also read: Asian spot LNG prices reach lowest level since July 2021

The Liquefied Natural Gas (LNG) Managing Director informed parliament’s standing committee the other day that ” the cargo spot rate fell down up to 50 per cent but we don’t have money to buy the LNG.”

The committee, which met with Senator Abdul Qadir in the chair, was discussing the issue of Rs445b recovery of Gas Infrastructure Development Cess (GIDC).

During the meeting, the LNG Limited MD said the financial condition was not good to purchase the cargo gas and they were still relying on the long term agreements to meet the demands.

He also revealed that there was an issue of Import Letter of Credit at the moment.

“Nobody will come if we give the tender for LNG at this time,” said the MD, pointing out that they had already gave LNG tenders for four times but in vain.

However, he told the committee that they could give the tender for spot LNG cargo for the next three months, saying that they would need two LNG cargoes next year in January.