ISLAMABAD: Pakistan will ramp up spot buying of liquefied natural gas (LNG) from the international market, seeking up to six cargoes for December, its procurement subsidiary said on its website, as the country prepares for a potentially crippling gas shortage.
December and January see the largest spike in demand for gas in Pakistan, but this year the demand-supply shortfall will be greater on the back of higher consumption and diminishing indigenous supply, authorities believe.
A source in Pakistan LNG Ltd. (PLL), which handles LNG imports, told Reuters that six spot cargo purchases for delivery in December would be the most in a single month by the country.
An advertisement by PLL said the country was seeking the cargoes, each of 140,000 cubic meters, in six delivery windows and Nov. 2 is the deadline for submission of bids.
Pakistan has long term LNG agreements in place, including one with Qatar, but has also been active on the spot market since August.
The country has advertised tenders for delivery of two cargoes in August, three in September, two in October and three in November.
In a press conference last week, Pakistan’s Minister for Petroleum Nadeem Babar said the country was headed toward a major gas shortfall in December and January, and blamed dwindling indigenous gas supply and rising demand.
He added that there had been a lack of local exploration licenses granted by the previous government, and while new gas discoveries were found, they were small in size. He said his government would advertise more exploration licenses this month.
According to a report put out in August by the Oil and Gas Regulatory Authority increased demand had resulted in natural gas availability constraint.
The main consumer of natural gas was the power sector, which consumed 38%, while the domestic sector was at 22% and fertilizer 16%.
Up to 45% of Pakistan’s power sector energy mix is based on natural gas, according to the report, which added: “The demand supply gap during FY2018-19 was 1,440 MMCFD, which is expected to rise to 3,684 MMCFD by FY2024-25 and 5,389 MMCFD by FY2029-30.”
Pakistan invites bids for record six LNG spot cargoes for December as gas crisis looms
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Pakistan invites bids for record six LNG spot cargoes for December as gas crisis looms
- December and January see the largest spike in demand for gas in Pakistan
- Country has advertised tenders for delivery of two cargoes in August, three in September, two in October and three in November
PIA cancels flights to Qatar, Bahrain, Kuwait and UAE after Iran attacks on US bases
- Iran confirmed it had attacked US forces stationed at Qatar’s Al-Udeid air base
- The retaliation came a day after the US attacked three of Iranian nuclear facilities
KARACHI: The Pakistan International Airlines (PIA) has canceled its flights to Qatar, Bahrain, Kuwait and the United Arab Emirates (UAE), it said on Monday, shortly after Iran struck United States (US) bases in Qatar with missiles.
Iran confirmed it had attacked American forces stationed at Qatar’s Al-Udeid air base. A caption on the screen called it “a mighty and successful response by the armed forces of Iran to America’s aggression” as martial music played during announcement on Iranian state television.
Qatar said it “successfully intercepted” missiles targeting the US base, and added it reserved the right to respond directly and in accordance with international law following the strikes. The US confirmed its air base in Qatar was targeted by missile attack from Iran and said no casualties were reported.
PIA said it had limited its flight operations as a precautionary measure due to the ongoing situation in the Gulf region, adding that its reservation department had started transferring the bookings of passengers to other flights.
“PIA flights will be resumed after the situation returns to normal,” the airline said in a statement. “All passengers who were traveling on these flights are requested to get timely information about their flights from the PIA call center.”
A UAE government spokesperson said they were closely monitoring the regional developments and continuously assessing the situation.
Kuwait’s civil aviation body issued a statement, saying: “The country’s airspace has been temporarily closed as a precautionary measure, starting today and until further notice. The decision comes within the framework of maintaining the highest levels of safety and security in light of regional developments.”
The Al-Udeid air base is home to the US Combined Air Operations Center (CAOC), which provides command and control of air power across the region as well as the 379th Air Expeditionary Wing, the largest expeditionary wing in the world.
Iran’s retaliation came a day after the US launched a surprise attack Sunday morning on three of Iran’s nuclear sites, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution.
Just before the explosions, Iranian President Masoud Pezeshkian wrote on the social platform X: “We neither initiated the war nor seeking it. But we will not leave invasion to the great Iran without answer.”
Pakistan says holds ample petroleum reserves amid fears of Iran’s closure of Strait of Hormuz
- Iran’s parliament has approved cutting off the narrow shipping lane through which about 20 percent of global oil and gas passes
- State Minister Bilal Azhar Kayani says no cause of concern for Pakistanis, government prepared to address any uncertainties
ISLAMABAD: Pakistan has ample petroleum reserves and an uninterrupted supply chain, a junior minister said on Monday, amid fears that Iran may cut off a vital oil and gas shipping lane in retaliation for US strikes on its nuclear facilities.
Iran’s parliament has approved cutting off the Strait of Hormuz, a narrow shipping lane in the Arabian Gulf through which about 20 percent of global oil and gas passes. It’s now up to Iran’s national security council to decide whether to move forward with the idea, which could lead to a spike in the cost of goods and services worldwide.
The price of oil jumped 4 percent shortly after trading began on Sunday night, but it quickly pared back as the focus shifted from what the US military did to how Iran would react. Oil futures were flip-flopping in Monday morning trading between gains and losses. They still remain higher than they were before the fighting began a little more than a week ago.
Pakistan’s State Minister for Finance and Railway Bilal Azhar Kayani denied rumors about a shortage of petroleum products in the South Asian country, stressing that his government was closely monitoring developments following tensions between Iran, Israel and the US to ensure stability.
“The Oil and Gas Regulatory Authority (OGRA) has directed all oil marketing companies to strictly maintain mandatory reserve levels in light of current global conditions, mitigating potential risks,” Kayani was quoted as saying by Pakistan’s Press Information Department.
“There is no cause for concern as petroleum product inventories are sufficient and supply operations continue smoothly across the nation.”
The statement came hours after President Donald Trump called for the US and other oil-producing economies to pump more oil as the White House sharpened its warnings to Iran against closing the Strait of Hormuz.
Global markets were trying to ascertain what lays ahead after the US struck on Sunday key Iranian nuclear facilities with a barrage of 30,000-pound bunker busting bombs and Tomahawk missiles.
Pakistan lacks adequate resources to run its oil- and gas-powered plants and mainly sources its oil from Arab Gulf nations.
Kayani reassured citizens that the Prime Minister’s office, Ministry of Petroleum and the Ministry of Finance were continuously monitoring the situation.
“We are fully prepared to address any uncertainties,” he said, adding the government was committed to ensuring the country’s energy security.
Pakistan extends airspace closure for Indian aircraft until July 23
- The restriction was first imposed in Apr. as part of tit-for-tat measures by India and Pakistan after an attack in disputed Kashmir
- The attack, which India blamed on Pakistan without offering evidence, led to a four-day military conflict between the two countries in May
ISLAMABAD: Pakistan has extended for the second time its airspace ban on Indian aircraft until July 23, the Pakistan Airports Authority (PAA) said on Monday, citing continued tensions between the two countries.
The restriction was first imposed on Apr. 24 as part of a series of tit-for-tat measures announced by both India and Pakistan, days after an attack in Indian-administered Kashmir.
India blamed Pakistan for the assault that killed 26 tourists, Islamabad denied the allegation and called for a credible international probe into the incident. Both countries later engaged in a four-day military conflict in May.
“The ban on Indian aircraft from entering Pakistani airspace has been extended by one month,” the PAA said in a statement. “Pakistani airspace will remain closed to Indian aircraft until July 23, 2025.”
The ban applies to passenger and military aircraft operated by Indian airlines, according to the PAA. A Notice to Air Missions (NOTAM) has also been issued in this regard.
“Any aircraft registered in or leased by India would also be prohibited from using the Pakistani airspace,” the authority added.
Pakistan had previously extended the ban till June 24. It has forced Indian airlines to reroute their flights, resulting in increased fuel consumption, longer travel times and higher operational costs.
Air India, which operates numerous flights to Europe and North America, estimated in May that the airspace ban could lead to approximately $600 million in additional expenses over the course of a year and requested compensation from the Indian government.
Pakistan stocks, rupee plunge as investors react to US strikes on Iran
- Benchmark KSE-10 Index dropped more than 3 percent to the lowest in over six weeks
- Analysts say if there was no further escalation, value buying is expected to come through
KARACHI: Pakistan’s stocks and currency markets tumbled on Monday as investors reacted to the United States’ (US) foray into the Israel-Iran conflict, traders and analysts said.
The benchmark KSE-100 index dropped more than 3 percent to 116,167 points, the lowest in more than six weeks, while the rupee continued to weaken against the US dollar in the seventh consecutive session on Monday.
The index has plunged by nearly 5 percent since June 13 when Israel first hit Iranian military and nuclear targets in Natanz, Isfahan and Fordow, killing top generals and scientists among 78 people.
“Rising geopolitical tensions following a US strike on Iran shook investor confidence, causing the KSE-100 Index to drop by 3.2 percent,” Mohammad Waqas Ghani, head of research at JS Global Capital Ltd., told Arab News, adding that this was the fourth largest single-day decline in terms of points historically.
The attacks on Iran by the US, which followed Israeli strikes, have intensified the war and deepened geopolitical tensions in the Middle East, sending jitters to markets across the globe.
Monday’s 3.2 percent fall was the worst since May 8 when the index had plunged 5.9 percent day-on-day, according to Ghani.
“The spike in global oil prices has further intensified concerns about Pakistan’s external account vulnerabilities,” he added.
Cash-strapped Pakistan, which is trying to revive its debt-ridden economy with the help of International Monetary Fund’s $7 billion program, spent $17 billion on oil imports last year.
Raza Jafri, head of research at Intermarket Securities Ltd., attributed the day’s fall to redemptions at mutual funds and possible margin calls.
“Regional tensions are the main reason behind the weak sentiment,” he said, adding that if there was no further escalation, the value buying was expected to come through.
RUPEE DROP
The ongoing tensions have also impacted the Pakistani currency that lost another 0.06 percent as the greenback closed at Rs283.87, according to State Bank of Pakistan (SBP) data.
The rupee is constantly falling and has devalued 0.3 percent since the start of Iran-Israel conflict.
“The rupee is feeling the heat of this war, very negligibly though,” Zafar Paracha, secretary-general of the Exchange Companies Association of Pakistan, told Arab News.
“This stability in the exchange rate reflects the overall macroeconomic stability the country has achieved.”
Pakistan’s top security body backs Iran’s right to self-defense after US, Israeli strikes
- Pakistan, Russia and China have called for a ceasefire after the strikes raised fears of a wider conflict in an already volatile region
- Experts say Pakistan, which shares border with Iran, will face additional security and economic challenges due to the worsening conflict
ISLAMABAD: Pakistan’s National Security Committee (NSC), which comprises top civilian and military leaders, has reaffirmed its support for Iran’s right to self-defense, Prime Minister Shehbaz Sharif’s office said on Monday, after United States and Israeli strikes on Iran.
The statement came a day after US attacks on three Iranian nuclear sites, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution.
As the strikes raised fears of a wider conflict in the already volatile region, Russia, China and Pakistan have urged the United Nations Security Council to adopt a resolution calling for an immediate and unconditional ceasefire in the Middle East.
On Monday, Pakistan PM Sharif presided over an NSC meeting to review the evolving regional situation and condemned Israeli attacks on Iran, which it said coincided with a constructive negotiation process between Iran and the United States.
“These reckless actions have escalated tensions, threatening to ignite a wider conflict and diminishing the opportunities for dialogue and diplomacy,” Sharif’s office said in a statement after the meeting.
“The NSC reaffirmed Iran’s right to self-defense as enshrined in the UN Charter.”
The NSC expressed grave concern over the potential for further escalation after the attacks on Iranian nuclear facilities in Fordow, Natanz and Isfahan by the US, reiterating that they violated the resolutions of the International Atomic Energy Agency (IAEA), relevant international law, and the UN Charter.
The forum reaffirmed Pakistan’s readiness to continue efforts to promote regional peace and stability and called on all parties to resolve the conflict through dialogue and diplomacy.
Tensions between Tehran and Tel Aviv initially flared on June 13 when Israel launched airstrikes against what it described as Iran’s military leadership and nuclear infrastructure. Both sides traded missiles on Monday in fresh strikes.
In a separate development, Pakistan PM Sharif spoke with Iranian President Masoud Pezeshkian on Monday afternoon — their second telephonic call in less than 48 hours.
“The Prime Minister conveyed Pakistan’s condemnation of the US attacks, which followed Israel’s unprovoked and unjustified aggression,” Sharif’s office said. “He reaffirmed Pakistan’s unwavering solidarity with the brotherly people and Government of Iran.”
The prime minister expressed concerns that the US strikes had targeted Iranian facilities that were under the safeguards of the International Atomic Energy Agency (IAEA), constituting a “serious violation of international law and the IAEA Statute.”
“While noting Iran’s right to self-defense, as enshrined under Article 51 of the UN Charter, the Prime Minister stressed upon the need to immediately return to dialogue and diplomacy as the only viable path forward,” the statement read. “He also called for urgent collective efforts to de-escalate the situation.”
Earlier on Monday, Pakistan’s UN Ambassador Asim Iftikhar Ahmad called on the Security Council to act “urgently and decisively,” warning against the danger posed to the populations of the region as the war intensifies.
Experts warn Pakistan, which shares a 900-kilometer porous border with Iran in its southwestern region prone to separatist militancy and cross-border attacks, will face additional security and economic challenges due to the worsening conflict between Tehran and Tel Aviv.
Surging global oil prices due to the worsening conflict will cause economic setbacks for Pakistan, which relies on expensive fuel imports for its energy demands, according to financial analysts. Islamabad is already grappling with a macroeconomic crisis amid a precarious balance of payment position.
The crisis also raises questions about how Islamabad will navigate its delicate balancing act between Iran, other Gulf partners, and the US, which remains one of Pakistan’s largest trading partners and a critical source of military and economic assistance.
