Pakistan Hunts Spot LNG as Strait of Hormuz Blockage Stalls Qatari Supply

Pakistan LNG Ltd is currently finalizing plans to secure at least one additional cargo for July, with up to six more slated for August. This procurement drive follows a record-breaking deal finalized Wednesday, where the state importer paid approximately $20.70 per million British thermal units (MMBtu) for immediate delivery. This price point represents the highest premium Pakistan has absorbed since 2022, when global markets were rattled by the initial fallout from the conflict in Ukraine.

Dependency on Qatar, which historically provides the bulk of Pakistan’s energy via long-term fixed contracts, has become a liability as tankers remain trapped behind the Strait of Hormuz. With no vessels observed exiting the chokepoint for several days, the government has been forced to issue back-to-back tenders in a desperate bid to replace missing volumes. These spot market acquisitions mark the highest monthly volume of non-contracted gas purchases since the onset of regional tensions, highlighting the immediate and costly impact of the maritime blockade on South Asian energy security.