New Delhi, April 4 Pakistan’s energy sector has been thrown into turmoil after a sudden geopolitical shock flipped the country’s liquefied natural gas (LNG) market from oversupply to acute shortage within weeks, a report has said.
At the start of 2026, Pakistan was grappling with excess LNG. Demand had been declining steadily for three years, falling from 8.2 million tonnes in 2021 to about 6.1 million tonnes by late 2025, according to Al Jazeera report.
The drop was driven by the rapid adoption of solar energy and reduced industrial activity, which together cut into gas consumption.
To manage the glut, authorities quietly diverted surplus LNG cargoes to international buyers and even shut down domestic gas wells to prevent pressure build-up in pipelines.
Excess gas that could not be rerouted was pushed into household networks at a financial loss, worsening the country’s already ballooning circular debt in the energy sector.
However, the situation changed dramatically after a major conflict erupted in West Asia. On February 28, the United States and Israel launched a large-scale military operation against Iran, triggering a chain reaction that disrupted global energy flows.
Iran retaliated with missile and drone strikes across the region, leading to a near halt in traffic through the critical Strait of Hormuz, a chokepoint that handles roughly one-fifth of the world’s oil and gas shipments.
The fallout for global gas markets was immediate. Iranian drones struck key facilities at Ras Laffan Industrial City on March 2, forcing Qatar to suspend production at the world’s largest LNG export complex.
QatarEnergy declared force majeure, halting supply commitments due to extraordinary circumstances, as per the report.
The conflict escalated further when Israel targeted Iran’s massive South Pars gas field on March 18.
The field shares an underground reservoir with Qatar’s North Field, raising fears of prolonged disruption to production in both countries.
Subsequent retaliatory strikes further damaged infrastructure at Ras Laffan, forcing Qatar to cut LNG output by 17 percent, with repairs expected to take years.
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