Pakistan seeks fifth spot LNG cargo for July as prices climb

Pakistan has moved to secure another spot liquefied natural gas cargo for July amid heightened regional uncertainty. Pakistan LNG Limited issued a fresh tender for delivery later this month as spot prices continue to climb.

When will the new LNG cargo be delivered?

Pakistan LNG Limited has invited bids from international suppliers until July 20, when they will also be opened. The tender seeks one LNG cargo for delivery on July 27-28, marking the fifth spot purchase for the month.

How many LNG cargoes has Pakistan bought this July?

This tender follows four spot LNG cargoes Pakistan has already purchased for July, part of continued efforts to maintain uninterrupted gas supplies amid volatile global energy markets. Each purchase has come at a steadily higher price than the last.

The first cargo, for delivery between June 30 and July 4, was bought at $16.73 per million British thermal units, according to the company. A second cargo for delivery on July 10-11 was purchased at $17.37 per MMBtu, followed by a third for July 15-16 at $18.23 per MMBtu.

Why are LNG prices rising for Pakistan?

The most recent cargo, secured two days ago, was purchased at $20.69 per MMBtu, reflecting a sharp increase in spot LNG prices amid geopolitical tensions in the region. The steady rise in procurement costs shows how regional uncertainty is affecting global LNG markets, with buyers paying more to secure prompt deliveries.

Energy analysts said Pakistan's decision to seek another spot cargo signals that authorities remain focused on maintaining adequate LNG supplies despite rapidly rising prices. They noted that the jump from $16.73 per MMBtu for the first July cargo to $20.69 per MMBtu for the latest purchase amounts to a rise of nearly 24% within weeks.

What does this mean for Pakistan's energy costs?

Analysts said continued geopolitical tensions and supply concerns could keep spot LNG prices elevated. This could raise Pakistan's import bill and add pressure on the country's energy subsidies and external accounts if high prices persist.