Pakistan has bought the most expensive liquefied natural gas (LNG) tranche in its history with September LNG deals closing around $15/MMBtu.
Pakistan entered into these costly LNG deals under spot purchases for the month of September-2021. The agreements were needed to save the country from expected energy shortages if LNG is not procured on time.
Pakistan is currently pursuing a short-term procurement strategy for the procurement of LNG. The country places tender for procurement every month. Resultantly, it has to face price volatility of monthly contracts, as compared to fixed price in a Long term contract.
Rising prices will be at the center of the global natural gas supply problem, which means prices will rise from the United States to Europe. Dutch gas, the European benchmark, is trading at record levels as countries in the region want to replenish their reserves.
Previously, Pakistan received offers from Gunvor and PetroChina with quotes of $15.397/mmbtu and $15.1998/mmbtu respectively.
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