Gastech report urges faster deployment of solar, wind and energy storage to strengthen energy security and reduce exposure to future supply disruptions
Pakistan is among the countries worst affected by liquefied natural gas (LNG) supply disruptions caused by the closure of the Strait of Hormuz, exposing the country’s heavy dependence on Gulf supplies and increasing pressure on its power and industrial sectors, according to Gastech Conferences’ report, ‘The Outlook for Gas and LNG Markets in Asia’.
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, leaving the country particularly exposed to disruption in shipments through the region.
The report said gas supply disruptions had prompted Pakistan to turn towards coal, hydropower and nuclear power, while volatility in LNG prices and uncertainty surrounding shipping were likely to sharply increase power costs.
Gastech said the conflict involving Israel, the United States and Iran, which began in February, and the resulting bottleneck in the Strait of Hormuz had redrawn global energy flows and highlighted the geopolitical vulnerability of gas and LNG markets.
Beyond the immediate disruption, the report said Asian policymakers could strengthen domestic energy security by accelerating renewable energy deployment, including utility-scale solar and wind projects, commercial rooftop solar and energy storage.
It also highlighted the need for investment in long-term infrastructure, including gas storage, while adjusting power generation mixes and providing greater flexibility to gas-fired power plants.
Other options under consideration across the region include expanding operating reserves to improve grid flexibility during unexpected disruptions, increasing strategic fuel stockpiles for transport and power generation, and strengthening cross-border electricity trade to help manage shortages.
