Oil & Gas

Pakistan is seeking to replace disrupted Middle Eastern energy supplies by turning to alternative sources such as Russia, Venezuela, and Nigeria. The government is also trying to secure additional LNG cargoes as it faces growing fuel shortages linked to regional conflict and blocked supply routes.

The country has been hit hard by a surge in global energy prices following the war involving the United States, Israel, and Iran. Disruptions—especially around the Strait of Hormuz—have reduced fuel availability, contributing to gas shortages, power outages, and rising import costs.

To manage the crisis, authorities in Islamabad are diversifying suppliers for both crude oil and LNG. This includes leveraging discounted or newly accessible oil from sanctioned or previously restricted markets, while also seeking emergency purchases from the global spot market to stabilize supply.

At the same time, the government has instructed the Oil and Gas Regulatory Authority to review the national oil supply chain and create a centralized monitoring system. This aims to improve transparency, prevent hoarding, and ensure smoother distribution amid the crisis. Meanwhile, import costs have surged sharply, with premiums rising to around $34 per barrel compared to about $12 previously, highlighting the financial strain on the country’s energy system.