Gulf LNG Disruptions Leave Pakistan Exposed

Pakistan's reliance on liquefied natural gas (LNG) from Gulf suppliers has left it vulnerable to disruptions in shipping through the Strait of Hormuz, a critical waterway that handles around 20% of global LNG transit.

The Strait of Hormuz is currently experiencing supply chain issues due to damage at Qatar's Ras Laffan facility, which affected around 17% of Qatar's export capacity. Repairs could take several years under a worst-case scenario, potentially reducing Gulf LNG exports by around 6.5 million tonnes per month.

Pakistan, which relies on the Strait for around 99% of its LNG supplies from Qatar and the UAE, is already considering alternative electricity sources such as coal, hydropower, and nuclear power to mitigate the impact of supply disruptions.