Pakistan Boosts Domestic Energy Production to Mitigate LNG Supply Issues

Pakistan's Power Minister Awais Leghari has declared that the country's increasing utilization of domestic energy sources has significantly diminished its vulnerability to disruptions in global liquefied natural gas (LNG) supplies.

Leghari explained that the growing adoption of indigenous energy, including solar and wind power, nuclear plants, coal, and hydropower, has fortified the electricity sector against potential LNG supply shocks.

According to Leghari, around 74 percent of Pakistan’s electric generation now derives from local sources, with government objectives aiming to boost that to over 96 percent by the year 2034.

This transition has been spurred by what he referred to as a “people-led solar revolution,” in addition to prior investments in nuclear infrastructure, hydropower, and locally sourced coal, all contributing to the nation's enhanced energy self-sufficiency.

Historically, Pakistan has faced challenges with electricity shortages, often encountering daily power cuts for several hours during high-demand summer periods.

However, the nation has now reported excess power generation capacity after the development of coal, LNG, and nuclear power plants, alongside a slowdown in demand growth and a rise in rooftop solar installations.

In certain regions, solar energy production has even surpassed grid demand at various times. Nevertheless, power outages still persist in specific areas due to electric theft, transmission inefficiencies, and financial hurdles within the power sector, rather than an overall scarcity in supply.

These statements come as concerns rise about LNG availability following a temporary production halt by Qatar, the world's second-largest LNG producer after the United States. Asian nations, which account for about 80 percent of Qatar’s LNG exports, are actively seeking alternative supply sources.

Leghari mentioned that LNG comprises roughly 10 percent of Pakistan's electricity generation, primarily fulfilling evening demand spikes and aiding in grid stability.

He recalled that during the global energy crisis ignited by Russia’s invasion of Ukraine in 2022, Pakistan was forced to enact extended power cuts after being unable to secure LNG shipments on the spot market.

Despite potential disruptions or prohibitive costs in LNG imports, Leghari assured that such challenges would still have a limited impact on the nation's overall production capacity, industries, and agricultural activities.

However, he cautioned that long-lasting interruptions could lead to additional shortages during summer months when electricity usage surges due to widespread air conditioning.

“In a worst-case scenario, if LNG shipments cease for several months, Pakistan might encounter one to two hours of load shedding during peak summer evenings,” he stated, emphasizing that the resulting outages are likely to affect some urban and rural areas but not critical sectors such as industry or agriculture.

Pakistan is also enhancing its battery storage systems, enabling surplus solar energy generated during the day to be stored and utilized during peak evening demand.

The country has already canceled 21 LNG shipments scheduled for delivery in 2026 and 2027 as part of a long-term agreement with Eni, underscoring the decreasing demand for gas as local generation and solar capacity continue to expand.

Leghari indicated that the government intends to avoid investments in energy sources that might jeopardize national energy security, instead focusing on promoting indigenous clean energy over the next six to eight years.

Currently, approximately 55 percent of Pakistan’s electricity is sourced from renewable technologies, with government plans targeting an increase to over 90 percent by 2034.

Hydropower contributes around 40 terawatt-hours (TWh) of electricity annually, while nuclear power generates about 22 TWh and domestic coal approximately 12 TWh, collectively forming a substantial part of the nation's power supply without relying on imported fuels.

The scale of rooftop solar installations has rapidly reached over 20 gigawatts nationwide, with behind-the-meter capacity estimated between 12 and 14 gigawatts, could rise to as high as 18 gigawatts, significantly reducing daytime demand on the national grid.

During summer months, hydropower output also increases as river flows rise, providing up to 7,000 megawatts of additional capacity which aids in meeting the surge in electricity demand caused by cooling systems.