Pakistan Sets Record Spot LNG Buying to Keep Power Flowing, Generation Costs Jump 38%

According to an analysis by research firm Arif Habib Limited published by Oilprice.com on Tuesday, August 18, 2026 (27 Mordad 1405), Pakistan's power generation costs rose 38 percent in July from a year earlier. With regular cargoes from term supplier Qatar disrupted by the renewed closure of the Strait of Hormuz, Pakistan was forced to buy LNG on the spot market at the highest prices in four years. State-run importer Pakistan LNG Limited accepted a mid-July offer from TotalEnergies for a cargo priced as high as $21.88 per million British thermal units, the most Pakistan has paid for a single cargo since the Iran war began in February 2026. Power generation also rose 7 percent in July, the second highest output for that month in the country's history.