Pakistan is facing a rapidly destructive energy crisis as global liquefied natural gas (LNG) supplies tighten sharply following the war in the Gulf.
The crisis comes as flows of LNG from Qatar and the United Arab Emirates face major interruptions. Pakistan, which depends almost entirely on Gulf LNG, is among the most vulnerable economies affected, reported the Financial Times. The country entered 2026 with an LNG surplus due to low demand but this turned into a problem after Qatar halted production due to war in the region.
Nearly 99 percent of Pakistan’s LNG imports last year came from Qatar. However, recent disruptions have already begun to strain the system, with both of the country’s LNG import terminals significantly reducing operations to a fraction of normal capacity.
One of the terminals is expected to run out of LNG within days if new shipments are not secured. Officials familiar with the situation warn that terminal operations could cease entirely by the end of the month.
Earlier, Islamabad had requested QatarEnergy to redirect 24 cargoes and also sought to reschedule additional shipments from other suppliers, including Eni. Those efforts now appear to have backfired as global conditions tightened dramatically following the Iran war.
Attempts to urgently procure LNG from alternative markets in Europe, the United States, Oman, Azerbaijan, and Africa have so far failed, largely due to prohibitively high prices. Spot LNG prices have surged to around $23 per million British thermal units (MMBtu), doubling since the Gulf war started.
Rising shipping costs and longer transportation routes have further added pressure.
Pakistan may be forced to rely more heavily on furnace oil and other costly fuels to keep power generation running if LNG imports remain constrained.
The energy crisis could persist well beyond the immediate disruption. Pakistan GasPort’s leadership has warned that the country could face a prolonged period of instability, with “a very difficult year followed by two or three difficult years” if supply conditions do not improve soon.
