Pakistan has purchased its costliest spot liquefied natural gas (LNG) cargo since 2022 after renewed supply disruptions in the Middle East pushed Asian LNG prices to a four-month high.
According to Bloomberg, Pakistan LNG Limited (PLL) secured a cargo for late July delivery at around $21.88 per million British thermal units (mmBtu), the highest price the country has paid for spot LNG in nearly four years. Bangladesh has also purchased LNG cargoes for August at similarly elevated prices, underscoring mounting pressure on energy importers across South Asia.
The latest price surge has been driven by continued disruptions around the Strait of Hormuz, a key maritime route that carries roughly one-fifth of global LNG shipments.
Supply constraints have been compounded by delays in the resumption of exports from Qatar, the largest LNG supplier to both Pakistan and Bangladesh. Although exports were expected to normalize after earlier security concerns, full shipments have yet to resume.
Asian spot LNG prices have climbed to around $20-$21 per mmBtu, their highest level since late March, according to S&P Global Commodity Insights data cited by Bloomberg. Prices have nearly doubled from levels seen before the regional conflict, reflecting persistent concerns over supply availability.
The sharp increase has widened the gap between expensive spot purchases and Pakistan’s long-term LNG supply contracts with Qatar, increasing pressure on energy import costs. If elevated prices persist, they could add to the government’s financial burden and eventually feed into higher gas and electricity tariffs.
The latest energy price shock is also reinforcing efforts to reduce reliance on imported LNG. Bangladesh is accelerating investments in renewable energy, including expanded solar power incentives and increased imports of Chinese solar panels, with a target of reaching 10 gigawatts of installed solar capacity by 2030.
Pakistan is also diversifying its power mix. Recent data shows nuclear electricity generation increased by around 30 percent year-on-year in June, while coal-fired generation rose 5 percent, alongside continued expansion of renewable energy projects aimed at improving long-term energy security and reducing exposure to volatile global LNG markets.
