Pakistan Among Asia’s Worst Hit by LNG Disruptions: Report

Pakistan ranks among the Asian nations most at risk of LNG supply disruptions resulting from the closure of the Strait of Hormuz, with Qatar and the UAE together supplying approximately 99 percent of the country’s LNG, according to a Gastech report. The report, "The Outlook for Gas and LNG Markets in Asia," indicates that LNG constitutes roughly 30 percent of Pakistan's total gas supply, primarily utilized for power generation, fertilizer production, and industrial activities.

Due to heavy reliance on Gulf suppliers, Pakistan is highly susceptible to shipping disruptions through the Strait of Hormuz. This strait, which accounts for about 20 percent of global LNG transit, saw 90 percent of LNG volumes exported to Asia in 2025. In response to the disruption, policymakers are exploring alternative sources of electricity, including coal, hydropower, and nuclear power, as the volatility in LNG prices and uncertainty over shipping is expected to elevate power costs.

The Gastech report suggests that Pakistan and other Asian economies could mitigate their exposure by accelerating renewable energy projects, such as utility-scale solar, wind farms, and commercial rooftop solar, along with increased investments in energy storage and gas storage facilities. Private sector companies like Universal Gas Distribution Company are also exploring these options, with discussions held at the conference on gas storage projects and long-term LNG supplies.

The broader Asian LNG market is experiencing a significant supply squeeze, with Qatar previously shipping about 110 billion cubic meters of LNG annually to Asia, Europe, and Africa, supplying around 20 percent of the global LNG market. The Ras Laffan facility's attacks reduced Qatar's export capacity by about 17 percent, with repairs potentially taking several years.

During a 14-day ceasefire window, only 15 LNG tankers were able to pass through the Strait of Hormuz, carrying around 1 million tonnes of LNG, compared to Qatar's typical monthly exports of 7 million to 8 million tonnes. Asian LNG prices have more than doubled to three-year highs, while European benchmark TTF prices soared from approximately €30 per megawatt-hour to a peak of €74 per megawatt-hour as the conflict intensified.

The report suggests that a potential Hormuz transit charge of up to $2 million per passage could add roughly $0.50 per MMBtu to LNG cargo costs, potentially causing Gulf LNG export volumes to drop by 6.5 million tonnes per month. A prolonged loss of Gulf exports could drive LNG prices higher through 2026 and reduce demand, particularly in Asia.