Qatar and the UAE account for about 99 per cent of Pakistan’s LNG imports, which are primarily used for power generation, fertiliser production and industrial activities, according to a report by Gastech Conferences.
The report, titled The Outlook for Gas and LNG Markets in Asia, said LNG contributes around 30pc of Pakistan’s overall gas supply. It was released during Gastech’s 54th annual event.
The report said Asian policymakers may now be reassessing their domestic energy and power systems to strengthen energy security and prepare for future disruptions.
It said countries could accelerate the development of renewable energy projects, including utility-scale solar plants, wind farms and commercial rooftop solar installations, alongside greater deployment of energy storage systems.
Policymakers may also seek to speed up investment in long-term infrastructure, including gas storage facilities, while updating power-generation mixes and improving the flexibility of gas-fired power plants.
Against this backdrop, Pakistan’s Universal Gas Distribution Company (UGDC) held discussions with several international companies on potential projects involving gas storage, long-term LNG supplies and gas distribution in overseas markets, according to UGDC Chief Executive Officer Ghiyas Abdullah Paracha.
The Gastech report said Asian countries were also examining ways to increase operating reserves to improve grid flexibility during unexpected disruptions. It added that governments could consider expanding strategic fuel reserves for transport and power generation.
Another option under consideration is expanding cross-border electricity trade to allow countries to share supplies during periods of shortage, the report said.
The report noted that instability in the Middle East, including the conflict involving Israel, the United States and Iran and the resulting disruption around the Strait of Hormuz, had altered global energy markets and highlighted the geopolitical sensitivity of gas and LNG supplies.
It said disruptions to gas supplies had prompted Pakistan to consider greater reliance on coal, hydropower and nuclear energy. At the same time, price volatility and uncertainty surrounding shipping were expected to put significant upward pressure on electricity generation costs.
Paracha told journalists that UGDC had received a stronger-than-expected response at the conference.
“We have got understanding with some companies that have shown interest in building gas storage facilities in Pakistan. Some companies have shown keen interest in long-term LNG contracts with UGDC,” he said.
He said UGDC’s participation at Gastech was also important because the company was highlighting Pakistan’s gas-sector reforms and the opening of the gas market to private-sector participation at an international energy forum.
