An infrastructure failure linked to Pakistan GasPort, the country’s second liquefied natural gas (LNG) import project, is expected to take around 10 days to repair, prompting multiple shipments to be cancelled or diverted, trade sources said.
On top of the two cargoes traders believe have already been cancelled or diverted away from the terminal, Pakistan is in talks with suppliers to potentially delay, divert or declare force majeure on deliveries until the problem is fixed, the sources said.
That would release added supply into Asian spot markets with a potentially bearish price impact.
The problem, linked to a pipeline blast or a gas leak, occurred on Tuesday, several trade and industry sources said.
It occurred as LNG converted back into natural gas onboard a floating import terminal was pumped through pipelines to the shore, two industry sources said.
It remains unclear if additional fixes to infrastructure will be needed that might delay the terminal’s restart, they said. —Reuters