Pakistan will have to pay in excess of $1 billion to secure LNG supply for the winter months, as spot prices soar amid massive disruptions to Qatari term supply.
The price tag will be fueled by the spot LNG prices in Asia surging to three-year highs and the plans of the Pakistani government to import 10 LNG cargoes from the spot market, at double the price at which LNG is being imported from Qatar, local daily Tribune reported on Tuesday.
Amid disrupted supplies from Qatar, Pakistan will have to purchase these additional 10 cargoes on the spot market for deliveries between November 2026 and February 2027 to ensure winter supplies.
Pakistan, which relied mostly on Qatari term supply before the war, has had to turn to expensive spot purchases which have pushed its power generation costs higher.
Some, but surely not all, LNG cargoes from Qatar have reached Pakistan in recent months following direct assurances from Iran to Pakistan that it would be safe for the vessels to transit the Strait of Hormuz.
Term supplies from Qatar are cheaper than the spot LNG cargoes, for which Asian and European buyers compete ahead of the winter, driving up prices.
Pakistan has been struggling to keep the lights on after Qatar in March declared force majeure on its exports following Iranian strikes that caused damage to its Ras Laffan LNG export hub. Since then, Pakistan has been forced to turn to spot LNG markets and pay hefty premiums for the occasional shipment.
Pakistan has been the most affected market in South Asia from the lack of Qatari supply, Wood Mackenzie said earlier this week.
Pakistan sourced 99% of its 2025 LNG imports from Qatar. The Strait of Hormuz closure reduced Pakistan-bound LNG by up to 0.4 Mt per month from March to November 2026, and Pakistan had to curtail demand, switch fuels, and release withheld domestic gas, resulting in over 2.5 Mt of gas demand destruction, according to WoodMac.
By Tsvetana Paraskova for Oilprice.com
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