Pakistan received a much-needed boost to its liquefied natural gas (LNG) supplies on Thursday after a Qatari cargo carrying around 81,936 metric tonnes of LNG docked at Port Qasim, following its transit through the strategically important Strait of Hormuz amid heightened regional tensions.
The LNG carrier Al Marrouna transported the cargo from Qatar’s Ras Laffan terminal under Pakistan’s government-to-government LNG arrangement with Qatar. The vessel crossed the Strait of Hormuz on September 7 before continuing towards Pakistan.
LNG arrival offers temporary relief
The arrival is expected to provide some short-term relief to Pakistan’s power sector, which is currently experiencing electricity load-shedding of between six and 12 hours in some parts of the country.
The Qatari cargo was reportedly secured at a price equivalent to 13.37% of Brent, helping meet near-term gas requirements at a time when uncertainty around regional shipping routes has increased.
Pakistan LNG Limited (PLL), meanwhile, has cancelled a spot LNG tender floated on September 5 that was scheduled to open on September 8.
The latest shipment is particularly significant because it is reportedly the first Qatari LNG cargo to leave the Persian Gulf since tensions surrounding the Strait of Hormuz escalated in July.
Hormuz tensions threaten energy supplies
The Strait of Hormuz is a critical route for global energy shipments, making developments around the waterway particularly important for countries that rely heavily on imported LNG.
Regional tensions have intensified in recent days, with Iran and the United States resuming exchanges of fire after a period of relative calm in August. Shipping activity through the Strait has also fallen below its 10-day average amid growing security concerns.
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The conflict has widened across the region, with Iran-aligned Houthi forces in Yemen launching attacks on several Saudi cities, while the United States has targeted Iranian oil tankers. Iranian state media has also reported attacks by Iran’s Revolutionary Guards on US vessels and oil tankers in the Gulf.
The worsening security environment has raised concerns over possible disruptions to energy shipments and increased insurance costs for vessels navigating the strategic waterway.
International LNG markets closely watch transit
The successful passage of Al Marrouna is also being closely monitored by international LNG markets.
Its transit has eased some concerns about a prolonged disruption to Qatari LNG supplies through the Strait, putting downward pressure on Asian benchmark Platts JKM and Northwest European LNG prices.
For Pakistan, however, the successful arrival does not eliminate the risks surrounding future LNG supplies. Any renewed disruption in the Strait of Hormuz could increase procurement costs, place additional pressure on energy security and affect electricity generation.
Qatar has sought to limit its exposure to the strategic chokepoint by maintaining diplomatic engagement with Iran and strengthening regional ties while continuing its role as a major LNG supplier and regional mediator.
The latest cargo therefore provides immediate relief for Pakistan, but continued stability around the Strait of Hormuz will remain crucial for the country’s future LNG supplies.
