Pakistan asks Qatar for more LNG to help reduce fuel shortages. The Pakistan is in talks to increase deliveries of Qatar’s liquefied natural gas (LNG). This is the South Asian nation’s latest effort to help ease a crippling fuel crisis. It was reported by Bloomberg on Tuesday.
Qatar is the biggest LNG supplier of Pakistan. Pakistan asked for several extra shipments each month as soon as possible, according to people with knowledge of the matter. Pakistan is requesting more charges as part of its long-term contract, one of the people said.
Discussions are ongoing. It is unclear whether Qatar has the extra capacity to follow the request, said the people. Two nations are having anonymity talks which are not public.
Qatar is one of the world’s top LNG exporters. Qatar is also being solicited by European and Asian buyers. It is for more cargo amid a global supply shortage. They said it has little capacity to boost deliveries in the near term.
Pakistan’s oil minister, Musadik Malik, did not respond to a request for comment.
Global Energy Crisis
The global energy crisis is the latest problem for the administration of Prime Minister Shehbaz Sharif. Who came to power in April after a period of political turmoil.
The nation’s energy import costs doubled in the 10 months ending in April. The ongoing fuel shortage is leading to ongoing blackouts across the country.
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The move comes as hour-long power outages hit the country, with demand outpacing generation during the peak summer months.
Pakistan has experienced hours-long power outages over the past month, with urban centers seeing cuts of four to six hours a day and rural areas of more than eight hours.
There is currently a gap of 4,600 megawatts between supply and demand. The gap with a supply of 21,000 megawatts and a demand of 25,600 megawatts. Rising global fuel prices have also increased pressure on the external account. And the local currency has reached record lows against the dollar.
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Boosting Qatar’s deliveries would not only alleviate Pakistan’s fuel supply deficit. But also help insulate the country from the volatile and expensive spot market.
State-owned Pakistan LNG failed to award a tender for purchases in the spot market last week after two suppliers were disqualified. Which could further exacerbate its fuel shortages.
Pakistan also aims to sign a new long-term liquefied natural gas purchase agreement and is considering an agreement with several countries.
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