Pakistan is among the Asian countries most exposed to LNG supply disruptions following the closure of the Strait of Hormuz, with Qatar and the UAE together supplying about 99 percent of the country’s LNG, according to a Gastech report.
The report, “The Outlook for Gas and LNG Markets in Asia,” said LNG accounts for about 30 percent of Pakistan’s total gas supply and is mainly used for power generation, fertilizer production and industrial activity. The heavy dependence on Gulf suppliers leaves Pakistan particularly vulnerable when shipping through the Strait of Hormuz is disrupted.
The Strait of Hormuz itself carries about 20 percent of global LNG transit, while 90 percent of the LNG volume exported through the strait in 2025 was destined for Asian markets.
For Pakistan, the disruption has already pushed policymakers toward alternative sources of electricity. The report said gas supply disruptions have prompted the government to look to coal, hydropower and nuclear power, while volatility in LNG prices and uncertainty over shipping are expected to increase power costs.
The report suggests that Pakistan and other Asian economies could reduce their exposure by accelerating renewable energy projects, including utility-scale solar, wind farms and commercial rooftop solar, alongside greater investment in energy storage. It also highlights gas storage, more flexible power plants, larger operating reserves and strategic fuel stocks as possible measures to improve energy security.
Pakistan’s private sector is already exploring some of these options. Universal Gas Distribution Company Chief Executive Officer Ghiyas Abdullah Paracha said the company held discussions with several international firms at Gastech on potential gas storage projects, long-term LNG supplies and gas distribution opportunities in overseas markets.
Paracha said UGDC received a greater than anticipated response at the conference, with some companies showing interest in developing gas storage facilities in Pakistan and others expressing interest in long term LNG contracts with the company. He also said UGDC used the forum to present Pakistan’s gas sector reforms and the opening of the gas market to private sector participation.
The wider Asian LNG market is facing a sharp supply squeeze. The report notes that Qatar previously shipped about 110 billion cubic meters of LNG annually to Asia, Europe and increasingly Africa, while Qatar supplied about 20 percent of global LNG. Attacks on the Ras Laffan facility affected about 17 percent of Qatar’s export capacity, with the report noting that repairs could take several years in a worst-case scenario.
The report also said only 12 of QatarEnergy’s 14 liquefaction trains were considered viable after the damage, implying a potential 17 percent capacity reduction. During a 14 day ceasefire window, around 15 LNG tankers were estimated to be able to pass through Hormuz, carrying about 1 million tonnes of LNG, compared with Qatar’s typical monthly exports of 7 million to 8 million tonnes. Maritime trackers recorded only five LNG carriers crossing the strait between April 22 and May 7.
The disruption has also pushed prices higher. Asian LNG prices more than doubled to three year highs, while European benchmark TTF prices rose from about €30 per megawatt hour to a peak of €74 per megawatt hour as the conflict intensified. The report said a potential Hormuz transit charge of as much as $2 million per passage could add roughly $0.50 per MMBtu to LNG cargo costs.
Wood Mackenzie estimated that Gulf LNG export volumes could fall by 6.5 million tonnes per month. The report said a prolonged loss of Gulf exports could push LNG prices higher through 2026 and reduce demand, particularly in Asia. S&P Global Energy has also cut global LNG supply forecasts by as much as 35 million tonnes, equivalent to roughly 500 cargoes.
Other major Asian economies are also exposed. China relies on Qatar for up to one third of its LNG imports; Japan imported almost 65 million tonnes of LNG in 2025, while Qatar supplied 41.4 percent of India’s LNG imports. India imported 27 million tonnes of LNG in 2024-25, including 11.2 million tonnes sourced almost entirely from Qatar’s Ras Laffan facility. In Singapore, natural gas accounts for nearly 95 percent of electricity generation, most of it from imported LNG.
The report said LNG consumption across Asia increased by 35 percent between 2015 and 2023, while previous projections had expected Asia Pacific natural gas use to more than double by 2050. The current supply disruption has therefore raised broader questions about whether the region can continue relying on increasingly exposed LNG supply chains.
Gastech said Asian countries may now need to reassess their energy mixes, increase domestic and strategic reserves, diversify LNG suppliers and expand cross-border electricity trade. Alternative LNG suppliers for South and Southeast Asian buyers include Papua New Guinea, Indonesia, Malaysia and Brunei, although the report noted limits including spare capacity, declining production at some fields and competition from domestic demand.
Reference Link:- https://propakistani.pk/2026/09/18/pakistan-among-asias-worst-hit-by-lng-disruptions-report/