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), reported Bloomberg.
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 price hike comes amid a global supply issue of natural gas that has meant rates from the US to Europe have surged. Dutch gas, the benchmark for Europe, is trading at a record high as regional countries looked to refill their inventory.
However, 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.
Earlier, Reuters reported that Gunvor and PetroChina placed the lowest offers for a tender by Pakistan LNG to buy four liquefied natural gas (LNG) cargoes for delivery in September.
As per sources, Gunvor placed the lowest offer of $15.397 per million British thermal units (mmbtu) for two cargoes to be delivered over Sept. 6 to 7 and Sept. 17 to 18 and $15.497 per mmBtu for a cargo to be delivered over Sept. 12-13, the sources said.
PetroChina placed the lowest offer for a cargo to be delivered over Sept. 27-28 at $15.1998 per mmBtu, they said.