Pakistan purchases expensive LNG for Sept

Pakistan has purchased the most expensive Liquefied Natural Gas (LNG) in its history with LNG deals for September at around $15 per million British thermal units (MMBtu). As per the report, it is the highest since the nation began LNG imports in 2015. Pakistan has made these pricey LNG deals for September under spot purchase. The deals were essential to save the country from potential power outages as power generators will be the main consumers of the latest cargoes. The purchase would put burden on the already cash-strapped Pakistan economy, which battles a widening current account deficit amid rise in the import bill. The country witnessed a single month’s record highest import figure of $6.3 billion in June this year while the current account deficit remained $1.3 billion in this period. Reacting to public criticisim of expensive deal a statement issued by the Petroleum Division says, “Pakistan LNG Ltd (PLL) board was forced to accept the four LNG ‘spot’ tenders at $15 per mmBtu for September 2021; otherwise, the replacement fuel (ie furnace oil), which is even more expensive, would have resulted in September power prices higher by at least 20 per cent.”


Loaded 0