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Pakistan Secures LNG Passage Through Strait of Hormuz

Pakistan Secures LNG Passage Through Strait of Hormuz
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By Staff, Agencies

Pakistan has negotiated with Iran to secure safe passage through the Strait of Hormuz for another liquefied natural gas shipment from Qatar, providing some relief as the South Asian country faces an energy shortfall.

The LNG tanker, which loaded its cargo at Qatar’s Ras Laffan facility in late June, crossed the strait over the weekend and is expected to reach Pakistan’s import facility by Tuesday, according to ship-tracking data.

People familiar with the matter said the passage was negotiated between government officials. The shipment would mark the second Qatari LNG delivery to Pakistan this month, although the sources requested anonymity because the discussions are not public.

LNG traffic through the Strait of Hormuz remains heavily disrupted, but some vessels have managed to pass through. Pakistan, which relies heavily on imports, has used its relationship with Tehran to secure several cargoes since the US war on Iran began in February.

Pakistan had considered issuing a tender if the shipment could not cross the strait. A successful delivery is preferable for Islamabad, however, as it seeks to avoid purchasing additional supplies from the spot market, where LNG prices have risen to their highest level since 2022.

Pakistan received nearly all of its LNG from Qatar last year. Qatar is home to the world’s largest LNG export facility, but QatarEnergy CEO and Energy Minister Saad Sherida Al-Kaabi said the country is currently exporting only a “very minute” volume through the Strait of Hormuz.

Al-Kaabi also warned that the crisis could delay some QatarEnergy expansion projects because critical equipment is unable to reach Qatar.

Several trains under the North Field East expansion are scheduled to begin operations in 2027, while the North Field South expansion is expected to start production in 2028.

The disruption has continued to weigh on Qatar’s economy amid the wider Strait of Hormuz crisis, which followed the US war on Iran and Tehran’s subsequent closure of the strategic waterway.

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