Pakistan Moves to Boost Gas Output as Middle East War Disrupts Energy Supplies
By Shahzad Paracha :
Pakistan’s state-run energy company Oil and Gas Development Company Limited (OGDCL) is preparing to increase natural gas production for the first time in years as the ongoing Middle East conflict disrupts regional energy supplies.
OGDCL Managing Director Ahmed Lak said the company plans to raise natural gas output by about 5%, targeting production of 865 million cubic feet per day.
The company also aims to increase crude oil production by 14% to around 40,000 barrels per day, as instability in the region threatens energy supply chains.
War Impact on Energy Flows
Energy markets have been shaken by the war involving the United States, Israel and Iran, which has disrupted shipping routes through the Strait of Hormuz, one of the world’s most critical oil transit corridors.
The situation worsened after Qatar halted liquefied natural gas production earlier this week following Iranian strikes targeting the country.
Pakistan relies heavily on LNG imports from Qatar, and the disruption has raised concerns about supply shortages.
Domestic Production Strategy
According to Lak, OGDCL could further expand production if new discoveries are successfully developed.
“This potential can be fully monetised subject to offtake by the buyers,” he said, indicating that increased output would depend on domestic demand.
In recent years, Pakistan has seen declining natural gas demand due to high electricity tariffs and the rapid spread of rooftop solar power systems, which have reduced reliance on gas-fired power generation.
As a result, Islamabad had earlier renegotiated long-term LNG import agreements with Qatar and requested domestic producers to scale down output.
LNG Supply Concerns
Industry sources said Pakistan is now considering reducing LNG terminal regasification due to undelivered Qatari cargoes, a move that could help ease pressure on the country’s foreign exchange reserves.
OGRA Orders LPG Stock Reporting
Meanwhile, the Oil and Gas Regulatory Authority (OGRA) has directed all LPG marketing companies to submit daily reports of their liquefied petroleum gas stocks amid fears of a potential fuel shortage linked to the conflict.
In a written directive, OGRA instructed companies to provide details of LPG quantities available at storage facilities and filling plants by 9:00 am each day. The reports must also include LPG shipments currently in transit or loaded on transport vehicles.
The regulator said the information must be submitted through a prescribed format via email to help authorities monitor supply levels and respond quickly to any emerging shortages.
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