According to Bloomberg, Pakistan has purchased the most costly Liquefied Natural Gas (LNG) in its history, with September LNG sales costing over $15 per million British thermal units (MMBtu).
Pakistan has made these high-priced LNG sales on a spot basis for September. The agreements were critical in preventing future power disruptions in the country, since power producers will be the primary consumers of the new cargoes.
The price increase comes as a result of a global natural gas supply shortage, which has caused rates to rise from the United States to Europe. As regional countries looked to replenish their inventory, Dutch gas, the European benchmark, is trading at a record high.
However, the purchase would put a strain on Pakistan’s already cash-strapped economy, which is grappling with a widening current account deficit and rising import costs
In June of this year, the country had a single-month high import amount of $6.3 billion, while the current account deficit remained at $1.3 billion.
