Pakistan consoles itself with coal as gas supply imbalance comes to a head

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This winter’s gas supply crisis that has gripped Pakistan, which has left businesses and homes short of energy in the middle of winter and shut down compressed natural gas re-fuelling stations for vehicles, had been heralded for months. However, it is a short-term phenomenon, caused partly by January’s record-breaking LNG price spike that made other markets more attractive for spot cargoes.

More fundamental is a chronic gas supply-demand imbalance that has constrained Pakistan’s economic growth for over a decade and forced it to turn to coal. LNG has been slow in coming to the rescue, as have proposed import pipelines from Iran and Turkmenistan.

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