Pakistan Buys Second Spot LNG Cargo as Supply Crunch Persists

Pakistan has bought its second spot market LNG cargo in as many weeks, in a sign that flows of liquefied gas out of the Persian Gulf have been slow to recover. According to Bloomberg, the country bought the cargo from TotalEnergies at a price of $17.37 per million British thermal units, to be delivered between July 10 and 11. The price is also higher than what Pakistan LNG Ltd. bought last week from BP: that cargo was priced at $16.74 per mmBtu, a premium of some $1 over the Asian spot market average.

Pakistan has relied on Qatar's term LNG supply…

LNG Market Background

The global LNG market has undergone a structural transformation in recent years, with U.S. exports reshaping trade flows and providing consuming nations with greater supply optionality. European buyers have accelerated long-term LNG contracting following the disruption of Russian pipeline gas supplies.

New LNG liquefaction capacity — from the U.S. Gulf Coast, Qatar's North Field expansion, and Australian projects — is expected to add significant supply volumes through the late 2020s, with implications for long-term contract pricing and spot market dynamics.

What to Watch

Stakeholders will be tracking spot LNG cargo pricing in Asian and European markets, liquefaction plant utilization rates, and upcoming long-term supply contract negotiations as global LNG trade flows continue to evolve.