Pakistan Faces Extensive Blackouts as Gas Shortfall Worsens

Copy Link Email X Reddit LinkedIn Tumblr Pakistan Faces Extensive Blackouts as Gas Shortfall WorsensPakistan is expecting a streak of power outages as the war in the Middle East chokes its supplies of liquefied natural gas, just as it prepares to host the next round of peace talks between Iran and the US.

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Article content(Bloomberg) — Pakistan is expecting a streak of power outages as the war in the Middle East chokes its supplies of liquefied natural gas, just as it prepares to host the next round of peace talks between Iran and the US.

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The country’s power shortfall touched 4,500 megawatts on Wednesday evening, a time when demand typically peaks, according to the power ministry. That’s about a quarter of total demand.

Article contentThe South Asian country is facing its biggest energy crisis in years as the war in Iran has effectively shut the Strait of Hormuz, while Qatar was forced to halt exports at the world’s largest LNG plant after attacks in early March.

Advertisement 1 Story continues below This advertisement has not loaded yet, but your article continues below. document.addEventListener("DOMContentLoaded", function() { const template = document.getElementById('oop-ad-template'); if (template && !template.dataset.adInjected) { const clone = template.content.cloneNode(true); template.replaceWith(clone); if (template.parentElement) { template.parentElement.dataset.adInjected = "true"; } } });Article contentThe ministry has warned that load shedding, or rolling blackouts, has expanded beyond two hours during the evening in some areas, due in part to lower hydropower generation. Local reports point to longer periods without power, sometimes extending to 14 hours, with the brunt of the blackouts in the rural areas.

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The country’s industries have been severely impacted by power outages over the last several days, said Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry. “Industry is facing around eight hours of loadshedding. It will affect both exports and local manufacturing,” he said.

The South Asian nation procures nearly all its liquefied natural gas, which it uses for power production, from Qatar. Pakistan is considering scouring the spot market for more expensive alternatives. Still, prices would need to decline for the fuel to become affordable, according to people with knowledge of the matter.

The crunch comes as Pakistan brokers negotiations between war rivals in the Middle East, with Washington signaling that the next round of talks may also be held in the country.

Meanwhile, Islamabad is battling to steady its finances by shoring up its foreign exchange reserves. On Wednesday, the government said it secured $3 billion in financial support from Saudi Arabia, which may help offset a loan repayment to the United Arab Emirates.

—With assistance from Khalid Qayum and Tooba Khan.