KARACHI: RLNG imports hit 18-month high.
December 2023 RLNG imports hit an 18-month high after Pakistan placed an order to buy two cargoes from the spot market for the first time in a year, taking the number of cargoes imported in December to 11.
It should be noted that the significant reduction in RLNG prices in the international spot market and the increased demand for gas during the winter prompted the government to purchase cargo from the spot market.
Tahir Abbas, Head of Research, Arif Habib Limited, told The Express Tribune that Pakistan has bought two cargoes at the rate of $16 per mmbtu, which will arrive in December, besides PSO and PLL. Qatar Energy has bought 9 cargoes from LNG and Gunur at an average rate of $10.67 per mmbtu, before Pakistan bought an average of 8 to 10 cargoes per month during the 17 months from July 2022 to November.
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It may be recalled that Pakistan stopped buying cargo after spot market RLNG price reached $40 per mmbtu in winter 2022, and started relying on domestic gas through load management. However, the imported gas is likely to be supplied for domestic use only, as businesses are not interested in using imported gas due to high cost and prefer domestic gas.
It should be noted that Pakistan’s dependence on imported gas is increasing due to a 9% decrease in local gas reserves on an annual basis.
Tahir Abbas added that Pakistan is getting 3,200 million cubic feet of gas per day from local sources, while 1,100 mmcfd gas will be available from 11 cargoes, thus 4,300 mmcfd for consumers in the coldest month of December. M gas will be available, while the requirement is 6,500 MMcfd, load shedding will be resorted to meet the shortfall.
