LNG Supply Disruption Threatens Pakistan’s Industrial Production

The disruption in LNG supplies from Qatar could put further pressure on Pakistan’s industrial sector as winter gas demand rises.

Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum (PBIF) and All Karachi Industrial Alliance, urged the government to secure alternative LNG supplies. He also called for gas rationing and immediate purchases of spot cargoes to prevent a wider gas crisis.

He said Qatar’s suspension of LNG deliveries to Pakistan until November 5 under the Force Majeure clause could severely affect industrial gas supplies. Force Majeure is a contractual provision that can excuse obligations during unavoidable emergencies or extraordinary events.

Mian Zahid warned that the disruption comes at a critical time. Gas demand typically rises as winter approaches. Industries also depend on stable supplies to maintain production and meet export commitments.

Pakistan Faces Growing LNG Shortfall

According to Mian Zahid, Pakistan’s unconstrained annual demand for natural gas and imported LNG has ranged between 1.27 and 1.46 trillion cubic feet (TCF) over the past five years.

Actual consumption, however, has remained around 1.1 to 1.2 TCF due to gas rationing and pipeline constraints.

Pakistan normally imports around 0.22 TCF of LNG each year from Qatar and other international suppliers. This equals roughly 110 to 120 cargoes annually.

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He said Pakistan secured only 17 LNG cargoes between March and September 2026 amid disruptions in regional energy supplies. The last shipment from Qatar arrived on September 22.

Mian Zahid estimated the current LNG shortage at around 400 million cubic feet per day (MMcfd). He said Pakistan could face a shortage of at least four LNG cargoes each month against winter requirements.

Export Industries Face Pressure

The business leader said power generation, manufacturing, textiles and value-added export industries depend heavily on uninterrupted gas supplies.

He warned that reduced LNG availability could force factories to cut production. It could also delay export shipments and disrupt supply commitments to international buyers.

Pakistan’s exporters are already facing high production costs. Any further energy shortage could make it harder for manufacturers to compete in global markets.

Mian Zahid cautioned that canceled export orders would place additional pressure on Pakistan’s export sector and the broader economy.

Call for Spot LNG Purchases

Mian Zahid said the government should immediately purchase LNG cargoes from the international spot market.

The Ministry of Energy and Petroleum Division have previously used spot purchases to meet supply gaps. He said the current situation requires a similar response.

Spot LNG may cost more in the short term. However, he argued that the cost would be lower than the economic damage caused by industrial shutdowns and lost exports.

He also urged the government to enforce a priority-based gas allocation mechanism.

Available domestic gas and imported LNG should be directed toward industrial processes and export-oriented industries, he said.

Industry Seeks Immediate Government Action

Mian Zahid welcomed government efforts toward macroeconomic stabilization and improvements in foreign exchange reserves.

He said maintaining industrial production should remain a key priority during the energy crisis.

The business community, he added, expects the government to secure alternative LNG supplies quickly. It also wants uninterrupted gas supplies for manufacturing and export industries.