Pakistan’s annual LNG imports fell to the lowest level in five years, even as electricity demand surges in 2022 as European buyers crowd out price-sensitive consumers.
“We have some of the most efficient regasified LNG-based power plants in the world. But we don’t have the gas to run them,” Dastgir said in an interview.
He said the South Asian country, which is reeling under severe economic crisis and is in dire need of funds, is seeking to reduce the cost of its fuel imports and shield itself from geopolitical shocks.
Pakistan’s foreign exchange reserves held by the central bank have dropped to $2.9 billion, barely enough to cover three weeks’ worth of imports.
“Not only is there a question of being able to generate energy cheaply, but also from domestic sources, that’s very important,” Dastagir said.
The Shanghai Electric Thar plant, a 1.32 GW capacity plant that runs on domestic coal and is funded under the China-Pakistan Economic Corridor (CPEC), started power generation last week. CPEC is a part of Beijing’s global Belt and Road Initiative.