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KARACHI: LNG imports in Pakistan have been sharply curtailed by supply disruptions and soaring prices, forcing the country to ration gas and consider alternatives as the closure of the Strait of Hormuz reshapes global energy flows, according to Pakistan GasPort Chairman Iqbal Z Ahmed.
Pakistan, which previously imported as many as 10 to 12 LNG cargoes a month from Qatar and other suppliers, received only three cargoes last month and has two planned for the current month, Ahmed said in an interview with Bloomberg’s Haslinda Amin on the sidelines of Gastech Bangkok 2026.
The reduction in supplies is having a major impact because LNG is a key fuel for Pakistan’s power generation, Ahmed said. Higher prices will further strain the economy, although he expects market conditions to stabilise towards the end of the year.
That would not necessarily mean an immediate recovery in prices or supplies, however, because of availability constraints and damage to infrastructure, he said. Pakistan’s ability to afford LNG is already under pressure. The country’s latest cargo was purchased at about $27 per mmBtu, a price Ahmed described as “completely unaffordable”. The combination of high prices and limited availability has contributed to a reduction in the number of cargoes imported, he said.
The government and private companies are therefore looking at alternatives to LNG, Ahmed said, warning that the fuel faces longer-term pressure from both high prices and declining demand.
“LNG companies in the long term will be destroying their own future,” he said, pointing to the growing use of solar power and the global shift towards lower-emission energy sources. Ahmed questioned whether LNG producers risk undermining their own market by charging excessively high prices as new supplies come online. Even if LNG supplies increase by 70 to 80 per cent by 2030, producers could face weaker demand if consumers shift to alternatives such as solar power, he said.
He urged LNG companies to consider limiting profit margins rather than relying entirely on market-driven pricing, saying the industry needed to find new markets and uses for the fuel.
US LNG producers could play a larger role in supplying countries such as Pakistan, India and South Korea, Ahmed said. Traditional markets such as China, Japan and South Korea have dominated US LNG exports, but Pakistan could offer producers a new market with attractive pricing, he said.
Pakistan has significant coal reserves and is also expanding solar power, Ahmed said. Although coal is a high-emission fuel, the country has limited alternatives as it seeks to reduce its dependence on expensive LNG.
“LNG is the right answer,” Ahmed said, while acknowledging that the global shift towards lower emissions was contributing to demand destruction.He said LNG is no longer necessarily a viable fuel for emerging markets in the way it was a decade ago, when it was relatively cheap and widely available.
Pakistan’s two LNG terminals are also being significantly underutilised, according to Ahmed. The Pakistan GasPort terminal has the capacity to process seven vessels a month, while Engro’s terminal can handle six, but both are currently processing only one or two cargoes a month, he said.
Pakistan should make greater use of existing terminals and open the LNG import and distribution market to the private sector, Ahmed said. Private companies can in some cases secure LNG at better prices than the government through its bidding process, he said.
“Solutions are there; what is lacking is support and willpower,” Ahmed said.He said GasPort has voluntarily given the government a $4.7 million discount on its capacity payment during an extended period when the terminal received no gas.
The company is prepared to cooperate with the government to ensure that the terminals are fully utilised and their investments justified, even if the financial returns are limited, he said.Ahmed urged the government to allow private companies to import LNG and sell it to areas where the transactions will not add to the circular debt. This will reduce the burden on the government and allow the private sector to assume the risks associated with imports, he said.
Pakistan needs to liberalise its LNG import and distribution markets to build a more resilient energy system, Ahmed said. Greater competition will provide more supply options and improve stability in both bulk and retail markets.
He said restrictive government policies have contributed to Pakistan’s energy problems and that the state lacked the capacity to manage all LNG imports through public-sector entities. “The government should not take the burden of importing and using LNG,” he said, adding that both existing terminals had the ability to secure cheaper and more sustainable LNG supplies and develop their own customer base.
Ahmed also questioned Pakistan’s reliance on LNG contracts linked to Brent crude prices. Qatari supplies are linked to Brent, while US LNG could offer an alternative based on Henry Hub prices, he said.
Henry Hub prices remain below $4 per million British thermal units, while US liquefaction costs are relatively transparent, Ahmed said. Transportation is the main disadvantage, but securing long-term US LNG supplies will be an attractive option given the volatility of global energy markets.
