Pakistan could face a serious LNG (liquefied natural gas) supply shortage after April 14, officials informed the Senate Standing Committee on Petroleum during a meeting chaired by Manzoor Ahmad.

Authorities revealed that LNG supplies from Qatar have completely stopped since March 2, while previously scheduled LNG cargo shipments have been postponed or reduced. The development may impact the country’s power generation sector and industrial gas supply.

LNG Cargo Deliveries Significantly Reduced

Officials told the committee that the government had deferred two LNG cargoes per month for the current year due to demand and supply management issues.

• In March, Pakistan expected 8 LNG cargoes, but only 2 shipments arrived.
• In April, around 6 LNG cargoes were scheduled, but supply remains uncertain.

Due to limited LNG availability, Sui Southern Gas Company has already reduced gas supply by 50% to a fertilizer plant, highlighting the growing pressure on industrial gas consumption.

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Power Sector Gas Supply Falls Sharply

The country’s power sector gas supply has dropped significantly, falling from 300 MMCFD (million cubic feet per day) to approximately 130 MMCFD.

Officials said that during the current shortage:

• Domestic consumers will be prioritized for gas supply.
• The power sector may not receive sufficient gas during April.

This could potentially affect electricity generation capacity, particularly during peak demand periods.

Alternative LNG Purchases Under Consideration

To address the supply gap, the government is considering purchasing LNG from alternative sources, including companies in Azerbaijan.

However, officials warned that spot market LNG purchases are significantly more expensive, with prices reaching around $24 per unit, compared to approximately $9 per unit under long-term contracts with Qatar.

Experts say such expensive purchases could lead to higher electricity generation costs, ultimately affecting power tariffs for consumers.

Potential Impact on Energy Sector

Energy analysts warn that the LNG shortage could have several consequences:

• Reduced gas availability for power plants and industries
• Increased reliance on alternative energy sources
• Higher electricity production costs
• Possible energy supply disruptions

The government is currently reviewing multiple options to ensure stable gas and electricity supply in the coming months.