Lahore – The rising demand for electricity before the arrival of summer has forced the government to take urgent measures, under which Pakistan has acquired three very expensive LNG cargoes from the spot market to overcome a possible power crisis.
According to sources, Pakistan LNG Limited (PLL) issued tenders on an emergency basis to meet the 4,500 MW power shortage, for which four global companies submitted offers.
The lowest bid among them was given by TotalEnergies, which offered a price of $ 18.88 per mmBtu for supply in late April. Similarly, Vitol Bahrain and OQ Trading also made expensive offers for the early weeks of May. Each cargo will produce about 100 million cubic feet of gas per day.
These prices are about 140 percent higher than Pakistan’s long-term contracts with Qatar, where LNG is usually available at between $7 and $9 per mmBtu.
The emergency purchase comes at a time when the closure of the Strait of Hormuz has disrupted the global supply chain, affecting both the availability and price of LNG.
According to officials, the country is already facing a power shortage of over 4,500 MW, leading to load shedding of 6 to 7 hours per day in many areas.
The Power Division has directed the Petroleum Division to arrange about 400 mmcfd of gas to keep 6,000 MW of gas-fired power plants operational.
According to experts, although LNG is expensive, the cost of generating electricity from diesel has crossed Rs 80 per unit, making importing LNG a relatively better option.
