Pakistan is on track to procure the most LNG cargoes on the spot market since the Iran war began as the re-escalation in the Strait of Hormuz threatens to disrupt anew term supplies from Qatar.
State-controlled Pakistan LNG this week issued a second tender for spot supply in as many weeks as the renewed hostilities over the past few days have disrupted Qatari shipments once again, with no LNG tankers observed to have exited the Strait of Hormuz for days.
Pakistan LNG wants to buy another cargo for delivery in July, according to a tender document Bloomberg has seen.
This would add to last week’s tender to buy an LNG cargo for July 15-16 delivery.
The decision was taken last Wednesday, after the renewed hostilities led to the cancellation of one LNG cargo from Qatar that was supposed to arrive in Pakistan later this month, anonymous traders familiar with the matter told Bloomberg on Thursday.
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If Pakistan procures the spot cargo in the tender it issued today, the South Asian nation, heavily dependent on Qatari term LNG shipments, would have bought at least four cargoes on the spot marker for July, the most in one month since the Iran war started on February 28.
Pakistan, which has historically received nearly all its LNG from Qatar under long-term fixed deals, has faced problems in procurement since the Iran war began and halted traffic through the Strait of Hormuz.
The emergency LNG tender is not the first one Qatar has issued over the past months. Continued disruption of traffic through Hormuz and the latest flare-up have prompted the South Asian nation to go back to seeking spot cargoes.
Two weeks ago, Pakistan bought its second spot LNG cargo in as many weeks, in a sign that flows of liquefied gas out of the Persian Gulf have been slow to recover.
The latest escalation from this week could push Pakistan to additional costly spot cargo replacements for the supply that’s not coming from Qatar.
By Charles Kennedy for Oilprice.com
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