Stories
Pakistan Faces Severe Winter LNG Crisis and Toxic Smog Threat Due to Hormuz Supply Disruption
- •Pakistan is facing a major energy crisis ahead of winter due to disrupted LNG supplies from the Strait of Hormuz amid Middle East tensions.
- •Pakistan LNG Limited head Masood Nabi warned that safe transportation issues could leave the country struggling to meet winter gas demands.
- •Purchasing 10 additional LNG cargoes from the international spot market between November 2026 and February 2027 could cost Pakistan over 1 billion dollars.
- •A shortage of LNG may force power plants to switch to alternative fuels like coal and oil, worsening toxic smog in Lahore and Punjab.
- •The energy crisis threatens Pakistan's economy, increasing electricity production costs, straining foreign exchange reserves, and risking industrial curtailments.
Key Questions Answered
Pakistan is facing an LNG shortage due to ongoing conflicts in the Middle East and the resulting disruption of gas supplies and transportation through the Strait of Hormuz. Because a large portion of Pakistan's supply comes from Gulf countries like Qatar, these shipping blockades and attacks have severely affected imports.
According to an OilPrice report, Pakistan may need to purchase 10 additional LNG cargoes from the international spot market between November 2026 and February 2027. This emergency supply is estimated to cost more than $1 billion, with spot market prices running significantly higher than long-term contract rates.
The LNG shortage has forced power plants to increase the use of alternative fuels like coal and oil for electricity generation. Burning these fossil fuels releases fine particles and pollutants that threaten to worsen the toxic smog crisis in Lahore and other cities during the winter months.
