Qatar Halts LNG Supply to Pakistan Amid US-Iran Tensions
The suspension of liquefied natural gas (LNG) supply to Pakistan by Qatar until November 5 has left the country's industrial sector on high alert, according to Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum (PBIF).
Hussain explained that Qatar's decision is based on a 'force majeure' clause, which allows parties to be relieved from fulfilling their contractual obligations in the event of natural disasters, accidents, or unavoidable emergencies.
Pakistan relies heavily on LNG imports, with Qatar supplying 20 percent of the world's total. Hussain warned that this disruption will severely impact industrial gas supplies and force Pakistani factories to scale down production.
The country's average annual unconstrained demand for natural gas and imported LNG has hovered between 1.27 and 1.46 trillion cubic feet (TcF) over the past five years, but actual consumption has been restricted to barely 1.1 to 1.2 TcF annually due to gas rationing and pipeline constraints.
Hussain emphasized that industries were already struggling in the global market due to the high cost of doing business, and the anticipated cuts in LNG supply will further exacerbate this issue.