Pakistan Pays Premium for LNG as Middle East Supply Stalls

The deal follows a purchase from BP just last week at $16.74 per mmBtu, a price already marking a significant premium over the Asian spot market average. These acquisitions underscore a stark reality: Pakistan can no longer rely on the long-term, stable agreements with Qatar that once anchored its energy sector. Since the outbreak of conflict in the Middle East, Qatari exports to Pakistan plummeted from roughly 800,000 tons in January to below 50,000 tons by April.

To bridge the widening gap, the government has been forced to hunt for expensive alternatives. While shipments from Oman and Mozambique have provided minor relief, they fall short of historical requirements. Even U.S. supplies, which arrived in May at a steep $18.40 per mmBtu, have failed to stabilize the market. The persistent need to pay these inflated premiums suggests that Pakistan’s energy crisis, characterized by fuel rationing and frequent power outages, will remain acute as long as the broader supply chain remains fractured.