Pakistan Increases Domestic Power to Prevent LNG Supply Shortages

Pakistan states that the expansion of solar, nuclear, hydropower, and coal has diminished dependence on LNG and enhanced safeguards against global supply disruptions.

Pakistan’s Power Minister Awais Leghari has stated that the country’s increasing dependence on domestic energy sources has notably diminished its vulnerability to interruptions in global liquefied natural gas supplies.

Pakistan’s Power Minister Awais Leghari stated that the country’s increasing reliance on indigenous energy sources, such as solar and wind power, nuclear reactors, coal, and hydropower, has effectively protected its electricity sector from possible LNG supply disruptions.

In an interview with Reuters, Leghari stated that approximately 74 percent of Pakistan’s electricity generation currently originates from domestic sources, with the government targeting an increase to over 96 percent by 2034.

He stated that the change has been influenced in part by what he referred to as a “people-led solar revolution,” in addition to previous investments in nuclear power, hydropower, and locally sourced coal, all of which have enhanced the nation’s energy independence.

Pakistan has faced ongoing challenges with electricity shortages, experiencing daily power cuts that could last several hours during peak summer demand. 

Nonetheless, the nation currently possesses excess generation capacity following the addition of coal-fired, LNG, and nuclear power plants, as demand growth has decelerated and rooftop solar installations have increased significantly.

In certain instances, solar generation has surpassed grid demand in specific regions. Nonetheless, outages continue to happen in certain regions of the country due to electricity theft, transmission losses, and financial challenges within the power sector, rather than a general lack of supply.

Concerns regarding LNG availability have intensified following Qatar’s temporary halt in production earlier this month, as it stands as the world’s second-largest LNG producer after the United States. Asian countries, purchasing approximately 80 percent of Qatar’s LNG production, have been urgently seeking alternative sources of supply.

Leghari stated that LNG presently constitutes about 10 percent of Pakistan’s electricity generation, primarily utilized to address evening demand peaks and assist in stabilizing the grid.

He observed that during the global energy crisis caused by Russia’s invasion of Ukraine in 2022, Pakistan had to implement prolonged power cuts due to its inability to secure LNG cargoes on the spot market.

The minister stated that, even in the event of disruptions to LNG imports or if they became excessively costly, the impact on the nation’s overall production capacity, as well as its industry and agriculture, would be minimal.

He cautioned that extended disruptions might still lead to further shortages in the summer months, when electricity demand increases due to the extensive use of air conditioners.

“In a worst-case scenario, if LNG cargoes were to halt for several months, Pakistan could face one to two hours of load shedding during peak summer evenings,” Leghari stated.

He noted that such outages would probably impact certain urban and rural communities, rather than essential sectors like industry or agriculture.

Pakistan is actively expanding battery storage systems to enable the storage of surplus solar power generated during the day, allowing it to be utilized later in the evening when demand is at its highest.

The nation has cancelled 21 LNG cargoes planned for delivery in 2026 and 2027 as part of a long-term agreement with Eni, indicating a decrease in gas demand due to the ongoing expansion of domestic generation and solar capacity.

Leghari stated that the government intends to avoid investing in energy sources that might jeopardize national energy security, opting instead to focus on indigenous clean power in the coming six to eight years.

Currently, clean sources produce approximately 55 percent of Pakistan’s electricity, and the government aims to reach over 90 percent by 2034.

Hydropower generates approximately 40 terawatt hours of electricity annually, while nuclear power contributes around 22 terawatt hours and domestic coal adds about 12 terawatt hours. Together, these sources constitute a significant part of the nation’s energy supply, all without dependence on imported fuels.

Rooftop solar installations have grown swiftly to exceed 20 gigawatts across the nation. The estimated behind-the-meter capacity ranges from 12 to 14 gigawatts, with the potential to reach as high as 18 gigawatts, which would greatly alleviate daytime demand on the national grid.

During the summer months, hydropower output increases due to higher river flows, contributing up to 7,000 megawatts of extra capacity and assisting in meeting the heightened electricity demand from cooling systems.