- Only 2 out of 8 gas shipments for March arrived from Qatar.
- One terminal may run out of gas within days. The other may shut down by end of March
- Emergency deals with Europe, US, and others have failed due to high prices
- Experts warn of “a very difficult year followed by two or three difficult years”
Pakistan gets almost all its LNG (Liquefied Natural Gas) from Qatar. The Iran-Israel war, which began on February 28, disrupted energy infrastructure and shipping routes across the region. Iran blocked the Strait of Hormuz, the sea route through which about 20% of the world’s LNG passes.
Qatar’s massive gas facility at Ras Laffan was also hit by missile strikes, forcing it to suspend exports. Pakistan had already received the last shipment that departed from it immediately after the war broke out.
Only two out of eight LNG shipments scheduled for March reached Pakistan due to the Gulf crisis. In April, three out of six planned shipments may also fail to reach the country.
Where Things Stand Right Now
Operating rates at Pakistan’s two LNG import terminals have fallen to one-sixth of normal levels. Gas supply at some facilities could be cut off entirely by the end of this month.
One terminal is expected to run out of LNG within days unless new shipments are secured. The second terminal could suspend operations entirely by end of March.
Pakistan GasPort’s head Iqbal Ahmed said, “Stocks will run out. We don’t know when the next shipment will arrive.”
Pakistan made emergency contact with suppliers in Europe, Oman, the United States, Azerbaijan, and Africa. The deals fell through because prices were too high.
What Happens Next
To manage the shortage, the government has already cut gas supply to fertilizer plants by 78 million cubic feet per day and brought back 350 million cubic feet of domestic gas that was previously held back.
If supply does not recover soon, Pakistan could face “a very difficult year followed by two or three difficult years” according to Pakistan GasPort.
