Pakistan has purchased seven spot liquefied natural gas (LNG) cargoes since the outbreak of the US-Iran conflict, as the country moved to secure fuel supplies ahead of peak summer electricity demand despite rising international prices.
According to data compiled by Arif Habib Limited, five of the seven spot cargoes arrived in July 2026, with each successive shipment purchased at a higher price.
The latest cargo, scheduled for arrival during July 27 to 28, was bought at $21.88 per million British thermal units (mmbtu), making it the most expensive spot purchase during the period.
The average purchase price across all seven cargoes stands at $18.72 per mmbtu. The accompanying data also shows Pakistan’s power generation cost from these spot purchases rising from Rs. 38.45 per kWh in May to an estimated Rs. 44.42 per kWh for the latest cargo. (Source: Arif Habib Limited, OGRA, NEPRA)
The purchases come as global LNG prices remained elevated following geopolitical tensions in the Middle East, increasing the cost of securing fuel through the spot market. Pakistan opted for spot imports to ensure uninterrupted gas supplies during the country’s peak electricity demand season.
Based on Arif Habib Limited’s estimates, each spot LNG cargo cost Pakistan roughly $50 million, compared with approximately $33 million for a long-term LNG cargo imported under Pakistan’s contract with Qatar, assuming Brent crude oil at $88 per barrel. The comparison highlights the significant premium associated with buying LNG from the spot market instead of under long-term supply agreements.
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