Summary
A recent conflict affected global energy supplies, causing Pakistan's previously surplus liquefied natural gas (LNG) to turn into a shortage. Attacks involving the United States, Israel, and Iran disrupted key gas facilities in the Middle East, impacting Pakistan's main gas suppliers, Qatar and the United Arab Emirates.
Key Facts
- Pakistan started the year with more LNG than needed due to decreased local demand.
- On February 28, the U.S. and Israel launched attacks on Iran, affecting regional stability.
- Iran retaliated, leading to a slowdown of crucial energy transit through the Strait of Hormuz.
- Iran targeted Qatar’s gas facilities, leading Qatar to halt LNG production temporarily.
- Damages to Qatar's facilities could take up to five years to repair.
- Global oil and gas prices rose sharply amid the conflict.
- Pakistan relies heavily on LNG from Qatar and the UAE, which was disrupted by the conflict.
- Pakistan's domestic gas fields are in decline, increasing reliance on imports.
