Pakistan among countries hardest hit by LNG disruptions through Strait of Hormuz — Dawn
Pakistan has become one of the countries most affected by disruptions in liquefied natural gas supplies due to the closure of the Strait of Hormuz. This was reported by Dawn, citing Gastech Conferences’ report, “Outlook for Gas and LNG Markets in Asia,” presented at the organization’s 54th annual event.
According to Gastech’s assessment, Qatar and the United Arab Emirates together provide about 99% of LNG supplies to Pakistan. This fuel is used mainly for electricity generation, fertilizer production and industrial needs. LNG accounts for approximately 30% of the country’s total gas supply.
Alternatives for the energy system
Gastech noted that disruptions in gas supplies prompted Pakistan’s government to turn to coal, hydropower and nuclear energy. According to the organization’s assessment, price fluctuations and uncertainty in maritime transportation could significantly increase electricity costs.
The report’s authors indicated that Asian countries can strengthen energy security by accelerating the development of large solar power plants, wind farms, commercial rooftop solar installations and energy storage systems. Other possible measures they named include investments in gas storage, updating the power generation mix and increasing the flexibility of gas-fired power plants.
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The report also referred to a possible increase in operational reserves for power grid stability, strategic fuel reserves for transport and generation, as well as the development of cross-border electricity exports and imports.
Gas storage negotiations
Ghyas Abdullah Paracha, chief executive officer of Universal Gas Distribution Company, said the company had discussed potential gas storage projects in Pakistan, long-term LNG supply contracts and gas distribution in foreign markets with international firms.
According to him, several companies expressed interest in building gas storage facilities in the country and signing long-term contracts with UGDC. The company also presented Pakistan’s gas sector reforms and the opening of its gas market to private business at an international energy forum.
Gastech links the risks to the gas market to the conflict involving Israel, the United States and Iran, which, according to the report, began in February, as well as to the emergence of a bottleneck in the Strait of Hormuz.
