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Pakistan decides on 18 LNG cargoes for November to February

Unnamed sources say Pakistan's winter gas demand will be met partly through LNG shipments from November to February, with Qatari supply preferred and spot buys as a backup.

Zaviya Desk

· 3 min read

Zaviya

Pakistan has decided to buy 18 imported cargoes of liquefied natural gas (LNG) to meet Pakistan's winter gas demand, unnamed sources said. The shipments are planned for the months from November to February, and supplies from Qatar will get preference because the government wants gas at lower prices. If Qatari deliveries do not start in time, spot cargoes, meaning one-off purchases made at short notice, may be bought to cover the gap.

Why the cargoes are planned

Sources said the LNG cargoes will be arranged for November to February, and that Prime Minister Shehbaz Sharif was briefed on the country's winter gas demand and supply. The preference for Qatari gas reflects a focus on securing supply at lower cost, the sources added. Spot purchases are the fallback if Qatari shipments are delayed, not the first option.

The domestic supply gap

According to the same briefing, domestic gas availability is expected to stay at around 1.4 billion cubic feet per day during winter. Punjab alone could need up to one billion cubic feet per day in the season, a large share of that national figure. The sources warned that the expected shortfall could leave locally produced gas insufficient even for household needs in the winter months, and the planned imports are meant to help cover that winter gas demand gap.

LNG price cut and what comes next

Earlier, LNG prices were reduced by up to 21 percent, and the Oil and Gas Regulatory Authority (OGRA), the federal regulator for the oil and gas sector, issued an official notification on the decrease. The overall cut was as much as $3.91 per MMBTU, a unit used to measure the heat content of gas. For the Sui Northern system the price fell by $3.83 per MMBTU to $15.19, while for the Sui Southern system it dropped by $3.91 to $14.22.

These are wholesale rates, not the prices consumers pay at home. Because the cargo plan comes from unnamed sources, details could change before any contracts are finalised. The next steps depend on when Qatari supplies begin and whether spot purchases become necessary to meet winter demand.

Aasan alfaaz mein

Pakistan ne sardiyon mein gas ki talab poori karne ke liye 18 LNG cargo mangwane ka faisla kiya hai. Yeh shipments November se February tak ke liye plan ki gayi hain, aur Qatar ki supply ko pehle tarjeeh di jayegi. Agar Qatar ki supply deri se aayi to spot cargo bhi khareeday ja sakte hain. Ghar ke gas bill par iska asar abhi saaf nahi hai, is liye sardiyon mein gas ki availability par nazar rakhna zaroori hai.

Questions readers ask

FAQ

No retail winter gas price has been set out in the details available. The government is focusing on Qatari supply to secure gas at lower prices, and LNG wholesale rates were cut by up to 21 percent earlier.

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