Pakistan’s Liquefied Natural Gas (LNG) import bill has increased by almost 280 percent during the last six years and reached to record high of $4.990 billion during fiscal year (FY) 2021-2022.
Due to the rise in prices of the LNG being imported under the long-term contract, which is linked with Brent crude rates, and the hike in spot prices of the commodity in the international market, Pakistan’s LNG import bill had reached to record high during FY22, according to official documents seen by ProPakistani.
During the last six years, there is an upward trend in Pakistan’s LNG import bill. In FY17 the country had imported LNG worth $1.313 billion, which increased to 2.454 billion in FY18.
In FY19, Pakistan’s LNG import bill had gone over $3.337 billion, however, during the next FY20, it had decreased to $2.662 billion and further reduced to $2.617 billion in FY21.
In FY22, the Energy prices in the international market had increased abnormally which ballooned Pakistan’s LNG import bill. In FY22, the country imported LNG worth $4.990 billion which is 280 percent higher than the import of the product in FY17.
With Pakistan discussing prospectus deals with international merchants who don’t appear to be in the mood to sell the fuel at low prices, LNG imports may end up costing even more in FY23. So far, deals with Russia have dominated local energy gossip, with Moscow seemingly willing to work with Islamabad.
ProPakistani confirmed on Monday that Pakistan is looking to procure 2-3 cargoes of LNG from Russia for the month of December 2022 and January 2023 at discounted prices and a deferred payment facility. Russia itself has not offered to supply gas in a recent meeting with the present government.
However, the Ministry of Foreign Affairs informed that during the bilateral meeting of Prime Minister Shahbaz Sharif with Russian President Vladimir Putin, on the sidelines SCO Summit at Samarkand in September, the premier discussed the matter of import of oil and gas products from Russia.
It is pertinent to mention here that a Pakistani delegation headed by Petroleum Minister Musadik Malik has flown to Russia for talks on a possible deal to procure LNG cargo and crude at discounted prices.