The government is once more attempting to secure the supply of liquefied natural gas (LNG), as the global market prices start to calm down, therefore it is anticipated that Pakistan’s energy situation would alleviate.
The most recent indication that Pakistan’s energy crisis is subsiding, according to Bloomberg reporter Stephen Stapczynski, is that Pakistan is considering repurchasing LNG imports. After a price decrease, “the country may announce a tender to purchase LNG,” he continued.
The country anticipates some reasonably priced spot cargoes on the market, and traders are lowering their expectations of outrageous prices for their gas, so they say that LNG supply will be readily available shortly. Given Pakistan’s mounting external debt problems and rapidly depleted foreign exchange reserves, it might be a problem that LNG suppliers are reluctant to provide fuel to Pakistan out of concern that it won’t be able to make future payments.
Since last year, Pakistan has frequently experienced energy blackouts as a result of fruitless attempts to buy gas on the pricey spot market. The price of gas has started to decline after an initial time of severe gas shortage in November 2022, and the price of LNG has decreased this month by 21.76 percent to $23.09 per cubic meter. On the same day a year ago, LNG could be purchased for $21.14 a cubic meter.
The near-term availability of LNG cargoes is also being fueled by domestic developments, and it is anticipated that the first shipment to arrive this year will come from Moscow. Yesterday marked the beginning of the eighth meeting of the Pakistan-Russia Inter-Governmental Commission (IGC) on Trade, Economic, Scientific, and Technical Cooperation. Both parties intend to evaluate current areas of mutual collaboration during the meeting, including prospective agreements on importing LNG and oil in the future months.
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