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…
Pakistan is severely affected by liquefied natural gas (LNG) shortages due to the closure of the Strait of Hormuz. Qatar and the UAE together account for approximately 99% of Pakistan's LNG supply, which is primarily used for power generation, fertiliser production, and industrial purposes. In fact, LNG makes up around 30% of the total gas supply, as reported by the Gastech Conferences.
Experts suggest that policymakers in Asia may be reviewing ways to future-proof domestic energy and power systems, focusing on energy security. This could involve accelerating the development of renewable energy sources such as large-scale solar, wind farms, and commercial rooftop solar, along with energy storage deployment. Policymakers may also consider investing in long-term infrastructure, improving gas storage facilities, and adjusting power generation mixes to enhance flexibility of gas plants.
The UGDC, Pakistan's Universal Gas Distribution Company, held discussions with several international firms regarding potential projects to mitigate the LNG disruptions. These projects include gas storage, long-term LNG supplies, and gas distribution in overseas markets. Ghiyas Abdullah Paracha, CEO of UGDC, stated that various countries are exploring options to expand operating reserves to ensure grid agility during unexpected events and rethinking fuel stockpiles to boost strategic stocks for transport fuels and power generation. They may also consider increasing cross-border power export/import options to share shortages.
The Middle East's complex situation, highlighted by conflicts involving Israel, the United States, and Iran, has redrawn the global energy maps in real-time, emphasizing the geopolitical sensitivity of gas and LNG markets. Gas supply disruptions have prompted Pakistan's government to explore alternative energy sources like coal, hydropower, and nuclear power. Price volatility and shipping uncertainties are likely to increase power costs.
The CEO of UGDC, Ghiyas Paracha, noted a greater-than-anticipated response at the conference. The company has successfully secured agreements with firms interested in building gas storage facilities in Pakistan and long-term LNG contracts with UGDC. UGDC's participation at the Gastech energy forum showcased Pakistan's gas-sector reforms and the opening of the country's gas market to private-sector participation on an international stage.
Written by urgent.news from Dawn's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
