Pakistan’s decision to forgo expensive liquefied natural gas imports for the first quarter of 2024 threatens to worsen the country’s already acute fuel shortages.
In response to the nation’s most recent request for LNG imports, Trafigura Group made two offers for delivery between January and February at a price that was nearly 30% more than market rates.
Pakistan LNG Ltd. Decision
According to dealers with insider knowledge, Pakistan LNG Ltd. decided on Monday not to purchase the cargoes in part because of their high price.
This is the most recent of nation’s numerous unsuccessful attempts to obtain LNG in more than a year, when spot prices soared to an all-time high in 2022 and prompted the country to limit purchases. This winter, planned power outages or fuel rationing for enterprises could be caused by the scarcity of petrol.
Although a $3 billion aid program to help country relieve its severe cash shortage and revive its economy was finally approved last month, LNG providers are still leery of the nation’s credit risk.
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