Almost all the country's re-gasified liquefied natural gas travels through the Strait of Hormuz, sourced under long-term Take-or-Pay contracts with Qatar and the United Arab Emirates. When the Strait closed, Pakistan still owed payment. The scale of the upstream damage became clear quickly. Iranian missile strikes on Ras Laffan in mid-March knocked out approximately 17 per cent of Qatar's liquefied natural gas export capacity, with repairs expected to take three to five years. QatarEnergy declared force majeure on long-term contracts in early March, subsequently extending it through mid-June. The global gas market lost roughly a fifth of its supply in March alone, according to the International Energy Agency.

Pakistan's immediate crisis was stark. With four Qatari tankers trapped in the Gulf since early March, and two attempted crossings in April aborted after Iran denied clearance, the country was forced to purchase spot liquefied natural gas for the first time since 2023 — at prices of $17 to $20 per million British thermal units. Industries shut down. Power outages spread. Fuel rationing began.

Leveraging its role as a mediator in the United States–Iran peace talks, Islamabad secured Iranian approval for Qatari liquefied natural gas tankers to transit Hormuz via an Iranian-approved northern coastal route. Since 9 May, three Qatari tankers........

© The Friday Times