Pakistan is among the Asian countries most exposed to LNG supply disruptions, according to a Gastech report. The country depends heavily on a concentrated supply network: Qatar and the United Arab Emirates together provide around 99 percent of Pakistan’s LNG supply. LNG also represents approximately 30 percent of Pakistan’s total gas supply, making reliable imports essential for the economy.
Why Pakistan Is Vulnerable to LNG Disruptions
Pakistan uses imported LNG to support electricity generation, fertilizer production and industrial activity. This dependence means a disruption to LNG shipments can affect several parts of the economy at the same time.
Shipping risks have increased because the Strait of Hormuz carries around 20 percent of global LNG transit. Any uncertainty around this route could make LNG deliveries more difficult, increase supply concerns and expose Pakistan to international price volatility.
How LNG Supply Problems Could Affect Electricity Costs
A shortage of imported LNG or a sharp rise in prices could complicate Pakistan’s energy planning. Power producers may face higher fuel costs, which could contribute to more expensive electricity generation.
The Gastech report identified coal, hydropower and nuclear generation as potential alternatives. However, changing the country’s generation mix requires planning, investment and dependable fuel and power infrastructure.
Renewable Energy Can Improve Pakistan’s Energy Security
Renewable energy could help Pakistan reduce its exposure to LNG supply disruptions over time. Utility-scale solar projects, wind farms and commercial rooftop solar can diversify electricity generation and reduce reliance on imported fuels.
Renewables would be more effective as part of a wider energy-security strategy. Energy storage, gas storage, flexible power plants, higher operating reserves and strategic fuel stocks could help the energy system respond to supply interruptions.
Pakistan Explores Gas Storage and Long-Term LNG Supplies
Universal Gas Distribution Company CEO Ghiyas Abdullah Paracha said the company discussed gas storage projects, long-term LNG supplies and other opportunities with international companies at Gastech. Several companies reportedly expressed interest in storage facilities and long-term LNG contracts.
Developing additional gas storage capacity could give Pakistan greater flexibility when shipments are delayed or international prices become volatile. Long-term contracts may also support planning, although supplier and route diversification remain important.
What Pakistan Can Do to Reduce LNG Risk
- Diversify LNG suppliers and import routes.
- Expand renewable energy, including solar and wind power.
- Develop gas storage and strengthen strategic fuel reserves.
- Improve energy storage and flexible power-generation capacity.
- Maintain higher operating reserves to manage supply disruptions.
What LNG Disruptions Mean for Pakistan
Pakistan’s exposure to LNG supply disruptions highlights the need for a broader energy-security plan. Reducing supplier concentration, expanding domestic and renewable energy options, improving storage and strengthening strategic reserves could help protect electricity generation, industry and consumers from future shocks.
