KARACHI: The Pakistan LNG Limited (PLL), a state-owned entity mandated to procure and import liquefied natural gas (LNG) for the country, was “forced” to buy four LNG cargoes for more than $15 per million British thermal units (MMBTU), constituting the most expensive purchase of the commodity since Pakistan started importing it in 2015, said the energy ministry in a statement on Friday.
“The PLL Board was forced to accept the 4 LNG ‘spot’ tenders [at $15 per MMBTU] for September 2021,” the ministry said in an official statement.
Alternatively, it added, the country would have used furnace oil as the replacement fuel for electricity generation which would have raised the power prices by at least 20 percent in September.
The ministry maintained that diesel was yet another option, but it would have made electricity almost 50 percent more expensive.
After weighing different possibilities, the statement continued, the country decided to opt for “the lesser of the two evils.”
Pakistan procures about one-third of its LNG through spot trading while the remaining two-third is done through long-term contracts.
Earlier this year, the Pakistan Tehreek-e-Insaf (PTI) administration signed a long-term agreement with Qatar for additional 200 million cubic feet a day (MMCFD) of LNG, saying it had concluded the deal at about 31 percent lower rate than the Pakistan Muslim League-Nawaz (PML-N) government’s 2015 contract with Doha for 500mmcfd of gas.
Commenting on the two deals, the former finance minister under the PML-N administration, Miftah Ismail, said despite the government’s claims, people would pay a much higher price for the new LNG import.
“This month, the people of Pakistan will pay $8 per MMBTU for at least three LNG cargoes contracted by the PML-N government while the government is paying $15 for four cargoes,” he told Arab News.
“That is about $22.5 million per cargo,” he added. “Since the government is buying four cargos, it will be paying around $95 million extra.”
However, the energy ministry responded by saying that “no one, without a crystal ball, can perfectly time or beat an international commodity market.”
It added that Pakistan could opt of 100 percent long-term contract purchases as a matter of policy, though the mechanism would still not be without its "opportunity cost" since spot LNG prices could fall in the international market at any stage.
Pakistan 'forced' to buy expensive LNG to cut electricity cost — energy ministry
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Pakistan 'forced' to buy expensive LNG to cut electricity cost — energy ministry
- The country imported four liquefied natural gas cargoes this week at the highest rate it has ever paid since 2015
- Pakistan procures about one-third of its LNG through spot trading while the remaining two-third is done through long-term contracts
Security forces kill 11 militants in separate operations in Pakistan’s northwest
- Pakistan has struggled to contain a surge in militancy in northwestern Khyber Pakhtunkhwa province that borders Afghanistan
- Militant groups such as the Pakistani Taliban frequently target convoys of security forces, police and government officials
ISLAMABAD: Security forces gunned down 11 Pakistani Taliban militants in separate operations in the country’s northwestern Khyber Pakhtunkhwa (KP) province, the Pakistani military said on Saturday, amid a surge in militancy in the South Asian country.
The first intelligence-based operation was conducted in North Waziristan district, which borders Afghanistan, during which six militants were killed, according to the Inter-Services Public Relations (ISPR), the military’s media wing.
Another joint intelligence-based operation by police and security forces was conducted in the Kurram district, which led to the killing of five other Pakistani Taliban militants in a fire exchange.
“Weapons and ammunition were also recovered from killed Indian-sponsored khwarij (militants), who remained actively involved in numerous terrorist activities,” the ISPR said in a statement.
“Sanitization operations are being conducted to eliminate any other Indian-sponsored kharja (militant) found in the area.”
There was no immediate comment by New Delhi to the Pakistani military statement.
Pakistan has struggled to contain a surge in militancy in KP in recent years. Militant groups such as the Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), have frequently targeted convoys of security forces, police stations and check-posts besides kidnapping government officials in the region.
Last year, the South Asian country saw 73 percent increase in combat-related deaths, with both security forces and militants suffering casualties in large numbers.
As per statistics released by the Pakistan Institute for Conflict and Security Studies (PICSS), combat-related deaths in 2025 rose 73 percent to 3,387, compared with 1,950 in 2024. These deaths included 2,115 militants, 664 security forces personnel, 580 civilians and 28 members of pro-government peace committees (combatants), the think tank said in a press release.
Islamabad has frequently accused Afghanistan of allowing its soil and India of backing militant groups, including the TTP, for attacks against Pakistan. Kabul and New Delhi have consistently denied this.
