Pakistan among worst hit by LNG disruptions, risks sharp rise in power costs: report

Profit reported, citing a Gastech Conferences report, that Pakistan ranks among the nations hit hardest when shipments of liquefied natural gas (LNG) are interrupted by the blockage of the Strait of Hormuz. The country depends heavily on Gulf suppliers, putting pressure on its power and industrial sectors. Qatar and the UAE together supply about 99% of Pakistan's LNG, which is mostly used for electricity, fertiliser production and industry.

Around 30% of the country's gas supply comes from LNG, so disruptions in the region hit it directly. The report noted that gas supply disruptions have prompted Pakistan to lean on coal, hydropower and nuclear power. It also warned that swings in LNG prices and doubts over shipping could sharply raise power costs.

According to the same report, hostilities drawing in Israel, the United States and Iran since February have reshaped energy flows worldwide and laid bare the geopolitical fragility of gas and LNG markets. It suggests Asian policymakers could bolster domestic energy security by speeding up renewables, such as large solar and wind projects, rooftop solar for commercial buildings and energy storage. It also points to the need for long-term gas storage, more flexible gas-fired plants, larger operating reserves and stronger cross-border electricity trade.