Pakistan's LNG Dependence Exposed by Strait of Hormuz Disruption
Pakistan is among the countries worst affected by liquefied natural gas (LNG) supply disruptions caused by the closure of the Strait of Hormuz, exposing its heavy dependence on Gulf supplies and increasing pressure on its power and industrial sectors.
The Gastech Conferences' report 'The Outlook for Gas and LNG Markets in Asia' reveals that Qatar and the UAE account for about 99% of Pakistan's LNG supplies, which are largely used for power generation, fertiliser production, and industrial consumption. LNG accounts for around 30% of Pakistan's total gas supply.
Due to the disruption, Pakistan has turned towards coal, hydropower, and nuclear power. The report warns that volatility in LNG prices and uncertainty surrounding shipping will sharply increase power costs.