Overview
- Renewed US–Iran hostilities have disrupted tanker traffic through the Strait of Hormuz, cutting off some Qatari LNG cargoes and prompting Pakistan to seek immediate replacements.
- The government is finalizing purchases that include at least one spot cargo for July and as many as six for August to replace cancelled term shipments.
- Pakistan has already made multiple spot buys to cover summer power demand, including a TotalEnergies cargo for July 10–11 at $17.37/MMBtu and a later deal reported near $20.70/MMBtu.
- Tehran’s outreach to the Houthis and talk of shutting the Red Sea export route have widened maritime risk, complicating rerouting, insurance and ship availability for extra cargoes.
- Higher temperatures and weaker solar output have increased Pakistan’s reliance on LNG‑fired power, which raises near‑term costs for consumers and puts pressure on state finances if spot prices stay elevated.