Pakistan Among Asia’s Worst Hit by LNG Disruptions: Report

Pakistan is among the Asian countries most exposed to LNG supply disruptions after the closure of the Strait of Hormuz, with Qatar and the UAE together supplying concerning 99 percent of the country's LNG, according to a Gastech report.

Key points

• India imported 27 million tonnes of LNG in 2024-25, including 11.2 million tonnes sourced almost entirely from Qatar's Ras Laffan facility.
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• The report additionally stated only 12 of QatarEnergy's 14 liquefaction trains were considered viable after the damage, implying a potential 17 percent capacity reduction.
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• The report remarked a potential Hormuz transit charge of as much as $2 million per passage could add roughly $0.50 per MMBtu to LNG cargo costs.

Notably, the report, "The Outlook for Gas and LNG Markets in Asia, " remarked LNG accounts for concerning 30 percent of Pakistan's total gas supply and is mainly applied 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.

While 90 percent of the LNG volume exported through the strait in 2025 was destined for Asian markets, the Strait of Hormuz itself carries regarding 20 percent of global LNG transit. Finance Minister Hopeful for More Funds from China and US.

For Pakistan, the disruption has already pushed policymakers toward alternative sources of electricity. While volatility in LNG rates and uncertainty over shipping are anticipated to growth power costs, report remarked gas supply disruptions have prompted the administration to look to coal, hydropower and nuclear power.

For context, 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 additionally highlights gas storage, more flexible power plants, larger operating reserves and strategic fuel stocks as feasible measures to improve energy security.

Pakistan's private sector is already exploring some of these options. Universal Gas Distribution Firm Chief Executive Officer Ghiyas Abdullah Paracha stated the firm held discussions with a number of international firms at Gastech on potential gas storage projects, long term LNG supplies and gas distribution opportunities in overseas markets. Power Ministry Finally Asks Electricity Consumers If They're Happy.

Paracha remarked UGDC received a greater than anticipated response at the conference, with some businesses showing interest in developing gas storage facilities in Pakistan and others expressing interest in long term LNG contracts with the firm. He additionally stated UGDC applied the forum to present Pakistan's gas sector reforms and the opening of the gas market to private sector participation.

Notably, the wider Asian LNG market is facing a sharp supply squeeze. While Qatar supplied concerning 20 percent of global LNG, report notes that Qatar previously shipped regarding 110 billion cubic meters of LNG annually to Asia, Europe and increasingly Africa. Attacks on the Ras Laffan facility affected regarding 17 percent of Qatar's export capacity, with the report noting that repairs could take a number of years in a worst case scenario.

Meanwhile, the report additionally stated 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 regarding 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.

Notably, the disruption has additionally pushed costs higher. While European benchmark TTF costs rose from regarding €30 per megawatt hour to a peak of €74 per megawatt hour as the conflict intensified, asian LNG rates more than doubled to three year highs. The report remarked 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 remarked a prolonged loss of Gulf exports could push LNG costs higher through 2026 and reduce demand, particularly in Asia. S&P Global Energy has additionally cut global LNG supply forecasts by as much as 35 million tonnes, equivalent to roughly 500 cargoes.

Other major Asian economies are additionally exposed. While Qatar supplied 41.4 percent of India's LNG imports, china relies on Qatar for up to one third of its LNG imports, Japan imported almost 65 million tonnes of LNG in 2025. 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 almost 95 percent of electricity generation, most of it from imported LNG.

While previous projections had anticipated Asia Pacific natural gas employ to more than double by 2050, the report remarked LNG consumption throughout Asia rose by 35 percent between 2015 and 2023. The current supply disruption has therefore raised broader questions regarding whether the region can continue relying on increasingly exposed LNG supply chains.

Gastech remarked Asian countries may now need to reassess their energy mixes, rise domestic and strategic reserves, diversify LNG suppliers and expand cross border electricity trade. Although the report observed limits including spare capacity, declining production at some fields and competition from domestic demand, alternative LNG suppliers for South and Southeast Asian buyers include Papua New Guinea, Indonesia, Malaysia and Brunei. Stay Connected with ProPakistani.

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Taken together, the developments around pakistan Among Asia's Worst Hit by LNG Disruptions: Report point to a situation that is still moving, and the coming days should bring more clarity.