Pakistan faces significant risks from disruptions to liquefied natural gas (LNG) supplies after the closure of the Strait of Hormuz, according to a report released at the Gastech conference.

The report, The Outlook for Gas and LNG Markets in Asia, said Qatar and the United Arab Emirates supply about 99% of Pakistan’s LNG imports.

The fuel supports power generation, fertiliser production and industrial activity. LNG also accounts for about 30% of Pakistan’s total gas supply.

The disruption has highlighted Pakistan’s exposure to changes in global energy markets. It has also raised questions about the country’s long-term energy security.

Pakistan Looks to Diversify Energy Supply

The Gastech report said Asian policymakers may now seek ways to strengthen domestic energy systems against future disruptions.

The report pointed to faster development of renewable energy as one option. These projects include utility-scale solar plants, wind farms and commercial rooftop solar systems.

It also highlighted the need for greater investment in energy storage.

Policymakers could also expand gas storage capacity and improve the flexibility of power plants. Changes to the power generation mix could help countries manage unexpected supply shocks.

The report said countries may also expand operating reserves to improve grid flexibility. Strategic fuel stocks could increase as governments prepare for disruptions affecting transport and power generation.

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Cross-border electricity trade could provide another option. Countries could share power during periods of shortages, the report said.

UGDC Holds Talks on Gas Storage and LNG

Pakistan’s Universal Gas Distribution Company (UGDC) used the Gastech conference to hold discussions with international companies about potential energy projects.

UGDC Chief Executive Officer Ghiyas Abdullah Paracha said the talks covered gas storage, long-term LNG supplies and gas distribution opportunities in overseas markets.

“We have got understanding with some companies that have shown interest in building gas storage facilities in Pakistan. Some companies have shown keen interest in long-term LNG contracts with UGDC,” Paracha told journalists.

He said the company received a stronger-than-expected response at the conference.

The discussions could support efforts to expand Pakistan’s gas infrastructure and secure longer-term supplies.

War Raises Pressure on Global LNG Markets

The Gastech report said the changing security situation in the Middle East has reshaped global energy markets.

It linked the disruption around the Strait of Hormuz to wider geopolitical tensions involving Israel, the United States and Iran.

The report said the developments have highlighted the geopolitical risks facing gas and LNG markets.

For Pakistan, supply disruptions could add to pressure on electricity prices. The report said shipping uncertainty and volatile energy prices could increase power generation costs.

It also noted that Pakistan has been looking towards coal, hydropower and nuclear power as alternatives amid gas supply challenges.

Paracha said UGDC’s participation at Gastech also allowed the company to present Pakistan’s gas-sector reforms.

He said the company highlighted the opening of the gas market to greater private-sector participation.