Pakistan buys second spot LNG cargo in two weeks as Qatari supplies remain disrupted

Pakistan has purchased its second spot liquefied natural gas (LNG) cargo in two weeks as supply disruptions from Qatar continue following constraints on exports through the Strait of Hormuz, according to Bloomberg.

State-owned Pakistan LNG Ltd (PLL) bought a cargo for delivery on July 10-11 from TotalEnergies SE at a price of $17.37 per million British thermal units (mmBtu), traders familiar with the transaction said. The shipment was procured through a tender that closed on Friday.

The latest purchase follows Islamabad's efforts to replace LNG cargoes from Qatar that were cancelled after the conflict in the Persian Gulf disrupted exports.

Although tanker traffic through the Strait of Hormuz has increased since the United States and Iran reached an interim peace agreement, LNG exports through the waterway have yet to return to pre-war levels. The Strait handles about one-fifth of global LNG supplies.

Pakistan relied on long-term contracts with Qatar for nearly all of its LNG imports last year. However, the disruption caused by Iran's attacks on Qatari production facilities early in the conflict forced the country to turn to the spot market to meet its energy needs.

The latest spot purchase was priced at about twice the rate Pakistan pays under its long-term LNG contracts with Qatar.