The impact of the closure of the Strait of Hormuz is now being felt in Pakistan, as LNG supplies face major disruption. With dozens of shipments halted, fears of a gas crisis, price surge, and load shedding are rapidly growing.
According to sources, 22 LNG cargoes that were scheduled to arrive in Pakistan by May have been stopped due to the closure of the Strait of Hormuz.
This sudden disruption in imported liquefied natural gas has raised serious concerns about energy shortages across the country. Officials warn that the situation could significantly affect both supply and pricing.
Gas prices likely to surge
The suspension of LNG imports is expected to lead to a major increase in gas prices. Sources indicate that authorities may be forced to raise tariffs to meet revenue targets in the gas sector.
Experts caution that if the current supply gap persists, consumers could face a sharp rise in utility bills in the coming months.
The gas sector is already under financial strain, and the LNG disruption is likely to widen the revenue shortfall.
This year, the combined revenue target for Sui gas companies exceeds Rs852 billion. Of this, Sui Northern Gas Pipelines Limited has a target of Rs515 billion, while Sui Southern Gas Company aims for Rs347 billion.
More than 40% of gas companies’ revenue comes from the fertilizer and power sectors. In addition, significant income is generated from captive power plants and the CNG sector.
Any disruption in supply to these sectors could further complicate the financial outlook for gas utilities.
Burden on domestic consumers
Sources warn that if tariff differences and cross-subsidies are removed, gas prices for domestic consumers could become significantly more expensive.
This raises concerns about affordability, particularly for households already facing inflationary pressures.
The situation could also lead to gas load shedding, especially if additional supply is diverted to the power sector to maintain electricity generation.
Officials indicate that prioritizing gas for power production may reduce availability for domestic users, worsening shortages at the household level.
The halt in LNG imports highlights Pakistan’s vulnerability to global supply disruptions, especially those linked to geopolitical tensions in key energy routes.
With supply constraints, rising costs, and revenue pressures converging, the country may face a challenging period in managing its gas and energy needs.
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