Pakistan’s appetite for liquefied natural gas (LNG) is poised for a significant surge in the coming years, with projections indicating that the country’s demand will nearly triple within the next five years, according to reports from Bloomberg. This revelation was made by Shehryar Omar, the Chief Executive Officer of the Petroleum Institute of Pakistan (PIP), during his recent address at the World Petroleum Congress held in Calgary.
Omar stated that, by early next year, Pakistan will increase its monthly LNG imports to a total of 10 cargoes, a substantial increase from its current levels. Among these imports, one significant cargo is expected to originate from Qatar, a major source of Pakistan’s LNG shipments.
Pakistan’s growing demand for LNG comes in response to persistent gas shortages that have plagued the nation since the Russia-Ukraine conflict disrupted global energy supplies. These shortages have had severe implications across various sectors and households in Pakistan, exacerbating the country’s existing challenges.
Despite Pakistan’s efforts to alleviate its energy crisis by relaxing trade restrictions, global LNG suppliers remain cautious due to concerns surrounding the country’s credit risk and other uncertainties. Some suppliers are willing to provide LNG shipments, albeit at higher prices, while others remain hesitant to engage in deals, citing concerns about the opening of letters of credit and the availability of US Dollars.
The Petroleum Institute of Pakistan (PIP) and the government continue to work towards securing a stable and sufficient supply of LNG to meet the country’s growing energy needs. As Pakistan seeks to address these challenges, the global energy landscape and the country’s energy security situation will continue to be closely monitored.
