Pakistan Faces Major LNG Supply Risks Amid Strait of Hormuz Disruption
Pakistan is among the Asian countries facing significant risks from disruptions to liquefied natural gas (LNG) supplies following restrictions on shipping through the Strait of Hormuz.
According to the Gastech report The Outlook for Gas and LNG Markets in Asia, Qatar and the United Arab Emirates together account for around 99% of Pakistan’s LNG supplies. LNG also makes up approximately 30% of the country’s overall gas supply, with major demand coming from power generation, fertilizer production and industry.
Pakistan Highly Dependent on Gulf LNG
Pakistan’s dependence on Gulf suppliers has increased its exposure to shipping disruptions in the region.
The International Energy Agency (IEA) says almost all LNG exports from Qatar and the UAE pass through the Strait of Hormuz. In 2025, nearly 90% of LNG volumes exported through the strait were destined for Asian markets.
For Pakistan, a disruption in LNG imports can affect electricity generation as well as gas supplies for industries that rely on imported fuel.
Government Looks Toward Alternative Energy Sources
The Gastech report said Pakistan has been looking at alternative energy sources as LNG supplies face uncertainty.
Coal, hydropower and nuclear generation could play a larger role in meeting electricity demand if imported gas remains difficult or expensive to obtain. Rising LNG prices and higher shipping costs could also increase the cost of power generation.
The IEA has previously noted that gas-fired power generation accounted for about 25% of Pakistan’s electricity supply mix in 2024, highlighting the importance of LNG and natural gas to the country’s energy system.
Renewables Could Help Reduce Import Dependence
The Gastech report has also highlighted renewable energy as a possible way for Asian countries to strengthen their energy security.
Utility-scale solar projects, wind farms and commercial rooftop solar installations could help reduce reliance on imported gas. Greater investment in battery storage could also allow electricity systems to make better use of renewable power.
Energy storage, additional gas storage facilities and strategic fuel reserves have also been identified as potential measures for improving supply security.
LNG Prices Under Pressure
The disruption to Gulf LNG supplies has already affected international energy markets.
Recent market reports indicate that Asian LNG prices have risen sharply as buyers compete for limited available cargoes. The supply pressure has also increased concerns over electricity and industrial costs in countries that depend heavily on imported LNG.
The IEA has warned that a major disruption to LNG flows through Hormuz could create a substantial global supply shock because there are limited short-term alternatives for replacing Gulf LNG volumes.
Private Sector Explores Gas Storage
Pakistan’s private sector is also examining ways to strengthen the country’s gas infrastructure.
Universal Gas Distribution Company (UGDC) CEO Ghiyas Abdullah Paracha said the company held discussions with international firms about potential gas storage projects, long-term LNG contracts and opportunities in gas distribution.
He said several companies had shown interest in developing gas storage facilities in Pakistan, while others were interested in long-term LNG arrangements.
Other Asian Countries Also Face Exposure
Pakistan is not the only Asian economy affected by the disruption.
China, India, Japan, South Korea and other major LNG buyers are also competing for alternative supplies as Gulf exports face restrictions. The IEA says Bangladesh, India and Pakistan imported almost two-thirds of their LNG supplies through the Strait of Hormuz in 2025.
The situation has increased pressure on Asian economies to diversify their LNG suppliers, expand domestic energy resources and strengthen strategic reserves.
Pakistan May Need a More Diversified Energy Mix
The latest LNG disruption has highlighted the risks associated with heavy dependence on a limited number of suppliers and a major international shipping route.
Gastech has suggested that Asian countries could improve energy security by diversifying LNG sources, increasing strategic fuel storage, expanding renewable energy and strengthening cross-border electricity links.
For Pakistan, these measures could become increasingly important as the country seeks to reduce its exposure to international LNG price and supply shocks.
