Islambad October 4 2023: Pakistan purchased a liquefied natural gas shipment from the spot market for the first time in more than a year, a move that will ease a winter energy shortage.
Pakistan LNG Ltd. procured a single cargo for December delivery from Vitol SA at roughly a 13% premium to current spot prices, according to traders with knowledge of the information. Pakistan was seeking as many as two cargoes in a tender that closed earlier on Wednesday.
The fuel will help reduce the gas supply gap this winter, as the nation’s households and industries have grappled with outages of fuel and electricity. Suppliers had largely stopped offering spot shipments to Pakistan since last year due to the nation’s credit risk.
Pakistan, which earlier this year was on the verge of default, is facing a fuel shortage after Russia’s invasion of Ukraine sent energy prices surging. Factories across the country are shutting because of high energy costs or lack of gas, exacerbating Pakistan’s economic malaise.
The importer decided not to buy another cargo offered by Trafigura Group Pte. That was at a 37% premium to spot prices, according to traders.