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 accounting for around 99% of the country’s LNG supplies, according to a Gastech report.
The report, titled The Outlook for Gas and LNG Markets in Asia, said LNG contributes around 30% of Pakistan’s total gas supply and is primarily used for power generation, fertilizer production, and industrial activities. Heavy reliance on Gulf suppliers has increased Pakistan’s vulnerability to disruptions in shipping through the Strait of Hormuz.
The Strait of Hormuz handles around 20% of global LNG transit, while about 90% of LNG exported through the waterway in 2025 was destined for Asian markets. Disruptions have already prompted Pakistan to consider alternative electricity sources, including coal, hydropower, and nuclear power.
The report warned that LNG price volatility and shipping uncertainty could increase electricity generation costs. It recommended that Asian economies diversify their energy supplies by accelerating renewable energy projects such as utility-scale solar, wind farms, and commercial rooftop solar, while also investing in energy storage and strategic fuel reserves.
Pakistan’s private sector is also exploring alternatives. Universal Gas Distribution Company (UGDC) CEO Ghiyas Abdullah Paracha said the company held discussions with international firms at Gastech regarding gas storage projects, long-term LNG supplies, and overseas gas distribution opportunities.
According to Paracha, several companies expressed interest in developing gas storage facilities in Pakistan and entering into long-term LNG contracts. UGDC also presented Pakistan’s gas sector reforms and increasing private-sector participation in the gas market.
The broader Asian LNG market is facing a supply squeeze following disruptions to Qatar’s LNG infrastructure. The report said damage to the Ras Laffan facility affected around 17% of Qatar’s export capacity, with repairs potentially taking several years under a worst-case scenario.
Only 12 of QatarEnergy’s 14 liquefaction trains were considered viable after the damage, implying a potential 17% reduction in capacity. Meanwhile, LNG prices in Asia more than doubled to three-year highs, while European TTF prices also increased sharply.
Wood Mackenzie estimates that Gulf LNG exports could decline by around 6.5 million tonnes per month. The report warned that a prolonged reduction in Gulf supplies could keep LNG prices elevated through 2026 and further reduce demand, particularly across Asian markets.
With LNG consumption in Asia having increased significantly over the past decade, Gastech said countries in the region may need to diversify suppliers, strengthen domestic and strategic reserves, expand renewable energy, and increase cross-border electricity cooperation to improve long-term energy security.
