Pakistan Turns to Furnace Oil as LNG Disruptions Bite

Pakistan is turning to furnace oil to generate electricity due to disruptions in liquefied natural gas (LNG) supplies from Qatar, which have been suspended because of the war in Iran.

The supply squeeze has driven up Asian spot LNG prices, making replacement cargoes particularly costly for import-dependent Pakistan.

Pakistan is currently generating at least 800 megawatts of electricity from furnace oil during peak demand between 5 p.m. and 1 a.m., according to an official at the state-run Independent System and Market Operator (ISMO).

The ISMO official said that current furnace oil capacity is 1,400 MW and on average 800 MW is being taken by furnace oil to limit the import of regasified LNG.