Pakistan and Bangladesh were forced to buy some of their most expensive liquefied natural gas shipments in years as the Middle East conflict chokes supply, straining government finances and prompting both countries to rethink their reliance on the super-chilled fuel.
State-owned Pakistan LNG Ltd. bought a shipment for late July at about $21.88 per million British thermal units on Monday, its highest price since 2022, according to traders with knowledge of the matter. Bangladesh’s state-run buyer procured at least one shipment for August at an elevated level last week, the traders said.
Also read: LNG consumption declines 6.5% on costly import, lower output
The prolonged disruption to the Strait of Hormuz — a key conduit for about a fifth of global LNG supplies — has sent spot prices higher and deepened an energy crunch across South Asia’s most vulnerable nations. Pakistan and Bangladesh have been grappling with rolling blackouts after Qatar — their largest supplier — canceled scheduled deliveries as it closed its export facilities in March following an Iranian attack.
The spot shipments cost about double what the two countries would have paid for long-term supply from Qatar. The Persian Gulf producer has delayed plans to restore output following the recent flare-up around Hormuz.
