Pakistan’s energy supply is facing increased pressure following disruptions to liquefied natural gas (LNG) supplies linked to the closure of the Strait of Hormuz. The situation has raised concerns about the country’s energy security and the availability and cost of fuel for power generation and industrial activities.
A report presented at the Gastech conference identified Pakistan among the countries significantly affected by the disruption. Qatar and the United Arab Emirates account for around 99 per cent of Pakistan’s LNG supplies, making developments affecting shipping routes in the region particularly important for the country.
LNG contributes nearly 30 per cent of Pakistan’s overall gas supply and is used extensively in power generation, fertiliser production and industrial activities. Continued uncertainty in international shipping and global fuel prices could therefore place additional pressure on Pakistan’s energy sector.
The disruption has renewed discussions about reducing the country’s dependence on imported gas. The Gastech report highlighted the potential role of renewable energy in strengthening domestic energy security, including large-scale solar projects, wind farms and commercial rooftop solar installations.
Energy storage could also play an important role in improving the reliability of the power system. Expanding storage capacity would allow Pakistan to better manage fluctuations in energy supply and reduce some of the pressure created by disruptions in imported fuel.
The report also suggested that Pakistan could expand its gas storage facilities and improve the flexibility of its power generation system. Larger strategic fuel reserves and additional operating capacity could provide greater protection against unexpected interruptions in LNG supplies.
The disruption around the Strait of Hormuz has highlighted the vulnerability of international gas and LNG markets. Shipping constraints and higher fuel costs could increase the expense of electricity generation in countries that depend heavily on imported LNG.
Pakistan is also considering greater use of alternative domestic and relatively diversified energy sources, including coal, hydropower and nuclear power. Such a shift could help reduce dependence on imported gas and provide additional options for meeting electricity demand during periods of LNG shortages.
Universal Gas Distribution Company (UGDC) CEO Ghiyas Abdullah Paracha said the company held discussions with several international firms during the Gastech conference.
According to Paracha, some international companies expressed interest in developing gas storage facilities in Pakistan, while others showed interest in entering into long-term LNG supply agreements with UGDC.
The latest developments have highlighted the need for Pakistan to strengthen its energy supply resilience. Greater storage capacity, diversified power generation and increased investment in renewable energy could become important components of the country’s strategy for managing future fuel supply disruptions.
