Pakistan will not purchase costly liquefied natural gas shipments for early next year, a move that threatens further fuel shortages in the cash-strapped nation.
(Bloomberg) — Pakistan will not purchase costly liquefied natural gas shipments for early next year, a move that threatens further fuel shortages in the cash-strapped nation.
The country’s latest request for LNG shipments received two offers from Trafigura Group for January to February delivery at a roughly 30% premium to market prices. Pakistan LNG Ptd. decided on Monday not to procure the cargoes due in part to the high cost, according to traders with knowledge of the matter.
This is the latest in a string of failed attempts by Pakistan in more than a year to secure LNG, after spot prices surged to an all-time high in 2022 and forced the nation to curb purchases. The lack of gas could result in fuel rationing to industries or planned power outages this winter.
While Pakistan last month won final approval for a $3 billion aid program to help ease the nation’s dire need for cash and rescue its economy, LNG suppliers are still wary of the country’s credit risk.
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