LNG shortages hit Pakistan badly

LNG shortages hit Pakistan badly

BANGKOK: Pakistan is among the worst-hit nations by liquefied natural gas (LNG) disruptions due to the closure of the Strait of Hormuz and could future-proof its domestic energy and power supply by increasing its focus on renewables and coal. “Qatar and the UAE together supply about 99pc of Pakistan’s LNG — mostly for power generation, fertiliser production and industrial use. LNG accounts for about 30pc of total gas supply,” said the Gastech Conferences in its report ‘The Outlook for Gas and LNG Markets in Asia’ released at its 54th annual event. It said that beyond addressing immediate challenges, policymakers in Asia may now be reviewing how to future-proof domestic energy and power systems with renewed focus on energy security. This could be done by accelerating renewables, such as swift-build, utility-scale solar, wind farms and commercial rooftop solar, plus storage deployment. They would also be looking at speeding up investment in long-term infrastructure, including gas storage and updating power generation mixes and giving gas plants better flexibility. Gastech report notes US-Iran war has redrawn global energy maps This is where Pakistan’s Universal Gas Distribution Company (UGDC) held discussions with several international firms on potential projects, including gas storage, long-term LNG supplies and gas distribution in overseas markets, its Chief Executive Officer Ghiyas Abdullah Paracha said. The Gastech report said the countries were also examining options for expanding operating reserves to ensure grid agility for unexpected events and rethinking fuel stockpiles by expanding strategic stocks for transport fuels and power generation. The nations may also be looking at boosting cross-border power export/import options to share shortages. The report said the Middle East’s fluid landscape — as demonstrated by the conflict involving Israel, the United States and Iran which began in February and the resultant bottleneck in the Strait of Hormuz — has redrawn global energy maps in real time and further highlighted the geopolitical sensitivity of gas and LNG markets. Gastech noted that gas supply disruptions have prompted Pakistan’s government to look to coal, hydropower, and nuclear power, while price volatility and shipping uncertainty are likely to sharply increase power costs. Ghiyas Paracha told journalists that his company received a greater-than-anticipated response at the conference. “We have got understanding with some companies that have shown interest in building gas storage facilities in Pakistan. Some companies have shown keen interest in long-term LNG contracts with UGDC,” Paracha said. Paracha said UGDC’s participation at Gastech was also significant because the company was presenting Pakistan’s gas-sector reforms and the opening of the country’s gas market to private-sector participation at an international energy forum. Published in Dawn, September 18th, 2026