Pakistan Seeks Extra LNG Cargoes from Qatar to Ease Fuel Shortage

Pakistan is in talks with Qatar to expand liquefied natural gas (LNG) deliveries in a desperate bid to address the fuel shortage faced, reported Bloomberg.

Pakistan has asked Qatar – its primary LNG supplier – for more shipments every month this year. According to the report, Pakistan is asking for extra shipments as part of its long-term deal.

Discussions are currently underway, but it is unclear whether Qatar has the resources to fulfill Pakistan’s request. Qatar, one of the world’s top LNG producers, has also received requests for extra cargoes from European and other Asian consumers but has repeatedly stated that it has limited potential to increase deliveries in the medium term.

Increasing Qatari cargoes would not only help lower Pakistan’s fuel supply gap but would also serve to protect the country from the spot market. Following the disqualification of two suppliers, state-owned Pakistan LNG did not award a spot market purchase tender last week, potentially exacerbating the country’s fuel deficit.

Pakistan is also planning to establish a new long-term liquefied natural gas purchasing arrangement with a number of other nations, including Russia.

The global energy crisis is the newest stumbling block for Prime Minister Shehbaz Sharif’s cabinet, which took office in April following a period of political turmoil. Pakistan’s energy import bills have dangerously soared in the ten months ending in April, while the fuel shortfall is causing massive power outages across the country.