Pakistan will ramp up spot buying of Liquefied Natural Gas (LNG) from the international market, seeking up to six cargoes for December, as the country prepares for a potentially crippling gas shortage. December and January see the largest spike in demand for gas in Pakistan, but this year the demand-supply shortfall will be greater on the back of higher consumption and diminishing indigenous supply.
Six spot cargo purchases for delivery in December would be the most in a single month by the country. An advertisement by PLL said the country was seeking the cargoes, each of 1,40,000 cubic metres, in six delivery windows and Nov. 2 is the deadline for submission of bids. Pakistan has long term LNG agreements, including one with Qatar, but has also been active on the spot market since August. The country has advertised tenders for delivery of two cargoes in August, three in September, two in October and three in November.
Pakistan’s Minister for Petroleum, Nadeem Babar had said the country was headed towards a major gas shortfall in December and January and went on blaming dwindling indigenous gas supply and rising demand. The main consumer of natural gas was the power sector, which consumed 38%, while the domestic sector was at 22% and fertiliser 16%. Up to 45% of Pakistan’s power sector energy mix is based on natural gas.
