Pakistan Hits Record LNG Costs as Strait of Hormuz Stalls Supply

State-controlled importer Pakistan LNG Limited secured the record-breaking cargo from TotalEnergies Gas & Power Limited for delivery between July 27 and 28. This purchase surpasses the previous high set just one week prior, when the country paid $20.70 per MMBtu for an emergency shipment. These costs represent the highest price points for the South Asian nation since the current conflict in the region disrupted global energy flows in February.

Historically, Pakistan relied on consistent, fixed-price supply agreements with Qatar. However, the recent transit halt through the Strait of Hormuz has forced the government into the spot market at least five times this month alone. Government officials are reportedly finalizing plans to purchase one additional cargo for July and as many as six for August to prevent severe energy shortages. The current pricing environment mirrors the 2022 market volatility, when global energy costs surged following the Russian invasion of Ukraine and the subsequent collapse of European pipeline gas supplies.