Pakistan Forced to Buy Priciest LNG Shipments to Avoid Blackouts
- Nation’s gamble that spot prices would fall fails to pay off
- Global supply crunch has boosted rates from Europe to the U.S.
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Cash-strapped Pakistan’s bet that liquefied natural gas prices would go down has failed, forcing the South Asian nation to pay more than ever for the power plant fuel or risk blackouts.
Pakistan LNG this week bought four cargoes for September delivery at around $15 per million British thermal units, the highest since the nation began imports in 2015, according to people with knowledge of the matter. The importer scrapped a tender for September cargoes that closed earlier this month in a gamble that prices would fall.