Natural gas crisis may switch off lights in Pakistan

Pakistan only started importing liquefied natural gas six years ago, but its growing dependence on the super-chilled fuel is starting to turn into a nightmare.

The surge in global gas prices due to shortages in Europe has pushed Asian LNG to records for the time of year. That’s forced Pakistan to pay the most ever for spot shipments to top up supply under long-term contracts, or even forgo them altogether. The shortfall means the nation will “definitely” suffer power outages over the winter, Iqbal Z

Ahmed, the chairman of

Pakistan Gasport, which owns and operates one of the nation’s import terminals, said. “It will hit exports, industry and general morale more than anything else.”

Pakistan’s Ministry of

Energy did not respond to requests for comment.

Over the last decade, emerging nations including Pakistan built LNG import strategies on the premise that the fuel would be abundant and cheap for the foreseeable future. That came to a halt this year as Asian LNG rates soared. Pakistan does get more than half its LNG under long-term contracts, which provides some protection against the volatile spot market. Furthermore, Qatar has agreed to increase supply under those term deals, according to traders who asked not to be identified. The high costs may also push the government to encourage consumers to switch to electricity where possible to save gas for industry, heating needs.