The closure of maritime routes due to the war in the Middle East has raised fears of a gas crisis in Pakistan during the winter season.

The Petroleum Division has started work on a winter gas plan, as meeting domestic demand will be a major challenge if liquefied natural gas (LNG) supplies from Qatar are not restored. In the absence of supplies from Qatar, the government is considering importing spot LNG cargoes to meet the country’s requirements.

According to sources in the Petroleum Division, Pakistan will require a total of 21 LNG cargoes during the winter season. Spot LNG cargoes are expected to cost $17 per million British thermal units (MMBtu) more than Qatari LNG, with spot cargoes priced at around $30 per MMBtu.

Under long-term contracts, LNG imports from Qatar cost between $13 and $16 per MMBtu.

The Petroleum Division will seek approval from the federal government for the winter gas plan. Implementation will begin after the federal cabinet approves the proposal.
Pakistan meets around 40 per cent of its winter gas shortfall through LNG imports. If supplies from Qatar are not restored, the need to import more expensive spot cargoes could increase the financial burden on consumers.

Pakistan likely to change how gas, electricity bills are calculated

Separately, Pakistan is preparing to overhaul its gas and electricity subsidy system, with the government planning to move away from the existing slab-based and cross-subsidy arrangements towards targeted relief for low-income households.

According to media reports, the proposed reforms are linked to commitments made under Pakistan’s International Monetary Fund (IMF) programme. The objective is to reduce the financial burden on the energy sector by directing subsidies towards eligible consumers rather than providing relief through the existing tariff structure.

The changes could affect how households qualify for subsidised gas and electricity, although the final impact on individual bills will depend on the approved tariff rates and eligibility criteria.