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Pakistan power generation costs jump 38% as spot LNG turns pricey

In July, Pakistan’s power output rose 7% year over year, and generation costs climbed amid the higher RLNG share and higher spot LNG prices.

Reported · Written up by our desk · Energy

OilPrice reports that Pakistan’s power generation costs surged 38% in July from a year earlier, driven by the country paying the highest spot LNG prices in four years during a disruption to regular supplies from Qatar.

According to the outlet, the increase reflected both higher generation volumes and a more expensive fuel mix. Arif Habib Limited said the costs were driven by a higher RLNG and furnace oil mix, increased reliance on spot RLNG cargoes, and elevated oil prices.

OilPrice also said total electricity generation rose in July, up 7% from the prior year to the second-highest level for any July month. The outlet attributed the stronger output to the highest-ever hydel generation, local coal, and imported coal.

The report added that Pakistan has leaned on the spot market after renewed closure of the Strait of Hormuz and cargo disruptions tied to Qatar. It said Pakistan issued tenders for July and August delivery, and that in mid-July state-controlled importer Pakistan LNG Limited accepted an offer from TotalEnergies Gas & Power Limited.

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