30 June 2024
Tough going: Pakistan’s LNG imports recover but long-term supply hurdles persist
Publication date: 06 May 2024
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Pakistan’s LNG import levels are recovering amid lower spot prices and shrinking domestic production, but the country is struggling to seal long-term contracts and remains sensitive to price swings in global markets.
Tight gas supply has weighed on Pakistan’s gas-fired power generation, which dropped by 12% year on year during October 2023-February 2024, the International Energy Agency (IEA) said in its most recent quarterly gas market report published in April.
The country nevertheless looks set to capitalise on the reduction in LNG prices from last year’s levels. Pakistan’s LNG imports increased marginally in 2023 to 7.15 mt, up from 6.9 mt in 2022. However, imports remain 14% below 2021 levels.