Pakistan turns to spot LNG and domestic output for energy

Pakistan is weighing the purchase of liquefied natural gas (LNG) on the spot market to mitigate supply disruptions resulting from the ongoing conflict involving Iran. Petroleum Minister Ali Pervaiz Malik stated that while spot market options are being explored, the government favors government-to-government agreements to avoid the high premiums currently impacting the energy sector.

The regional instability has driven spot LNG prices to between $20 and $30 per mmBtu. This surge follows a force majeure declaration from Qatar, which has forced the nation to seek alternative fuels or engage in costly spot purchases to meet peak summer power demand.