Blackouts are expected, Pakistan’s energy shortage could last for years

The Pakistan government was unable to secure a long-term supply of Liquefied Petroleum Gas (LPG) which could now result in years of energy shortage.

The country is already cash-strapped and has been hit with widespread blackouts this year. There have been several failed attempts to buy gas from the expensive spot market.

According to dealers, there won’t be many LNG supplies until major new export projects come up in 2026. Currently, a large number of spot cargoes are being shipped to Europe, where consumers are prepared to pay high rates to offset declining Russian pipeline flows with gas. This means that for years to come, emerging countries will experience energy shortages and economic turmoil.

Pakistan is now experiencing a difficult time due to high inflation and declining foreign exchange reserves. The most recent blow comes at a bad moment. According to merchants, some LNG suppliers are reluctant to provide fuel to the country out of concern that it might not be able to make future payments.

Sui Northern Gas Pipelines Ltd., a gas distributor in Pakistan, announced in a notice to the stock exchange that it intends to provide 100,000 LPG cylinders to users to address a probable gas shortage this winter. The government has instructed the firm that supplies customers with energy through pipelines in the northern part of the country to take action to satisfy demand.