Pakistan in discussion with Qatar for supply of LNG cargoes amid electricity shortfall

Pakistan is facing a critical juncture as it grapples with a severe electricity shortfall, exacerbated by the ongoing conflict in the Middle East and its impact on global energy supplies. The nation's reliance on imported Liquefied Natural Gas (LNG) has been severely tested, with potential cargoes previously returning from the Strait of Hormuz due to security concerns.

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Pakistan and Qatar are in an advanced stage of discussions for the supply of at least four cargoes of liquefied natural gas (LNG), which could pass through the Strait of Hormuz, sources told Dawn on Sunday.

Sources within the Power Division have revealed that discussions with Qatar for at least four LNG cargoes are in an advanced stage. This move is crucial as the country braces for rising temperatures, which typically drive up electricity demand. The Power Division has already placed a substantial order for LNG to ensure power generation, particularly for major plants in Punjab that are vital for stabilizing the national grid.

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The Power Division had already placed an order to the Petroleum Division for arranging around 400 million cubic feet per day (mmcfd) of liquefied natural gas (LNG) for power generation.

The government, led by Prime Minister Shehbaz Sharif, has been actively engaged in diplomatic efforts, including a recent tri-nation tour that included Qatar. These efforts aim not only to de-escalate tensions between the US and Iran but also to secure essential energy supplies. The urgency is underscored by the potential for significantly higher fuel costs if Pakistan resorts to using high-speed diesel or furnace oil, making even a few LNG cargoes economically viable.

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Qatar declared force majeure early last month in all its global LNG contracts, including those with Pakistan.

This situation highlights Pakistan's vulnerability to geopolitical instability and its dependence on international energy markets. The ability to secure these LNG cargoes, potentially utilizing Pakistani-flagged ships and diplomatic channels, will be a significant test of the nation's energy security strategy and its diplomatic leverage.

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Pakistan had requested Qatar, at the highest level, to provide at least four of those to it, for which it would also utilise its renewed diplomatic capital, if so required, sources said.