Islamabad: The federal government has decided not to purchase LNG spot cargoes for the time being, raising questions over how the country’s energy requirements will be met. However, officials say the decision was taken in anticipation of securing cheaper liquefied natural gas supplies from Qatar.
According to sources, Pakistan has rejected the lowest international bids for LNG spot cargoes, expecting more affordable supplies under a potential arrangement with Qatar. Officials believe Doha may provide Pakistan with LNG at more favourable rates under existing long-term agreements.
Media reports suggest that Pakistan is hoping to receive two LNG cargoes from Qatar at terminal contract rates, while Qatari authorities have reportedly given positive indications regarding availability.
The expected cargoes are likely to reach Pakistan through the Strait of Hormuz route, with reports indicating that the Iranian government is also expected to cooperate in facilitating the process.
The government is said to be pursuing measures aimed at meeting the country’s energy demands through lower-cost imported gas while reducing overall energy expenses. Under the anticipated arrangement, LNG from Qatar could be supplied at around 13.37 per cent of Brent crude oil prices.
Officials further indicated that Pakistan’s priority will remain long-term LNG agreements rather than reliance on the spot market in an effort to ensure price stability and energy security.
