Pakistan LPG Crisis: The disruption of supply chains amid tensions in the Middle East has resulted in Pakistan's energy storage rapidly depleting. Pakistan has only 9-10 days of LPG stock left.

Pakistan's energy reserves are dwindling.

Pakistan LPG Crisis: Amid tensions between the US, Israel, and Iran, the LPG (Liquefied Petroleum Gas) crisis in Pakistan is deepening. According to recent media reports, the disruption of the supply chain amid the war in the Middle East has had such an impact that Pakistan now has only 9-10 days of LPG stock left.

Pakistan's existing energy storage

• LPG - 9-10 days only
• Crude oil – approximately 11 days of stock
• Petrol – 27 days stock
• Diesel – 21 days stock

The main causes of the crisis

• Pakistan meets approximately 70% of its petroleum needs through imports from the Middle East. Meanwhile, LNG supplies from Qatar to Pakistan have been disrupted. This could lead to a severe power and domestic gas crisis in Pakistan within the next 10 days.
• Industrial cities like Lahore and Karachi have already seen gas supplies cut off, disrupting operations in textile and other factories.
• A significant portion of Pakistan's electricity is generated by LNG-fired power plants. A gas shortage could lead to power outages lasting 10-12 hours.
• To meet its domestic needs, Pakistan has to purchase gas from the spot market at higher prices, which is impacting its foreign exchange reserves.

Pakistan faces a major challenge.

The coming 10-15 days could be extremely challenging for Pakistan. Shahbaz Sharif's government may have to take several major measures to address the "energy emergency." These could include measures ranging from massive power cuts to limited gas supplies.

According to media reports, after the war in Iran began, Pakistan LNG tried to secure other cargoes through suppliers in Europe, Oman, the US, Azerbaijan, and Africa, but was told that all offers were too expensive.