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LNG supply threat spurs Pakistan energy security push: Report

Source: IANS - Business
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LNG supply threat spurs Pakistan energy security push: Report

New Delhi, Sep 19 — Pakistan is among the countries most vulnerable to liquefied natural gas (LNG) supply disruptions arising from any closure of the Strait of Hormuz, according to a report.

A report published in Dawn said that the country needs to accelerate investment in renewable energy, coal and domestic energy infrastructure to strengthen long-term energy security.

It further noted that Qatar and the United Arab Emirates account for about 99 per cent of Pakistan’s LNG imports which are used primarily for power generation, fertiliser production and industrial consumption.

LNG currently contributes around 30 per cent of the country’s total gas supply.

Moreover, policymakers across Asia are reassessing strategies to safeguard energy and power systems amid growing geopolitical uncertainty.

The recommended measures include faster deployment of utility-scale solar and wind projects, expansion of rooftop solar installations, and greater investment in energy storage technologies, according to the report.

It also highlighted the need for long-term infrastructure investments such as gas storage facilities, flexible power generation systems and enhanced operating reserves to improve grid resilience during supply shocks.

The Middle East tensions involving Iran, the United States and Israel and the resulting pressure on the Strait of Hormuz have underscored the geopolitical sensitivity of global gas and LNG markets, reshaping energy trade patterns and exposing supply vulnerabilities.

For Pakistan, potential disruptions to LNG supplies have prompted policymakers to place greater emphasis on alternative energy sources, including coal, hydropower and nuclear energy, according to the report.

It warned that fuel price volatility and shipping uncertainties could significantly increase electricity generation costs.

“The Middle East’s fluid landscape — as demonstrated by the conflict involving Israel, the United States and Iran which began in February and the resultant bottleneck in the Strait of Hormuz — has redrawn global energy maps in real time and further highlighted the geopolitical sensitivity of gas and LNG markets,” according to the report.