Pakistan Faces Extensive Blackouts as Gas Shortfall Worsens

Article content(Bloomberg) — Pakistan is expecting a streak of power outages as the war in the Middle East chokes its supplies of liquefied natural gas, just as it prepares to host the next round of peace talks between Iran and the US.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe country’s power shortfall touched 4,500 megawatts on Wednesday evening, a time when demand typically peaks, according to the power ministry. That’s about a quarter of total demand.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentThe South Asian country is facing its biggest energy crisis in years as the war in Iran has effectively shut the Strait of Hormuz, while Qatar was forced to halt exports at the world’s largest LNG plant after attacks in early March. Article contentArticle contentThe ministry has warned that load shedding, or rolling blackouts, has expanded beyond two hours during the evening in some areas, due in part to lower hydropower generation. Local reports point to longer periods without power, sometimes extending to 14 hours, with the brunt of the blackouts in the rural areas.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe country’s industries have been severely impacted by power outages over the last several days, said Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry. “Industry is facing around eight hours of loadshedding. It will affect both exports and local manufacturing,” he said.Article contentThe South Asian nation procures nearly all its liquefied natural gas, which it uses for power production, from Qatar. Pakistan is considering scouring the spot market for more expensive alternatives. Still, prices would need to decline for the fuel to become affordable, according to people with knowledge of the matter.Article contentThe crunch comes as Pakistan brokers negotiations between war rivals in the Middle East, with Washington signaling that the next round of talks may also be held in the country. Article contentMeanwhile, Islamabad is battling to steady its finances by shoring up its foreign exchange reserves. On Wednesday, the government said it secured $3 billion in financial support from Saudi Arabia, which may help offset a loan repayment to the United Arab Emirates.Article content—With assistance from Khalid Qayum and Tooba Khan.Article contentTrending Trump isolation deepens on world stage as allies rebuff, condemn PMN Business The Great Correction: Not even Wayne Gretzky's hometown could escape the crash of the 'exurbs' Real Estate Posthaste: What Mark Carney's gas tax cut could mean for the Bank of Canada News What is Anthropic's Mythos AI model and why does it have the financial world in a panic? Innovation Forcing people to pay a moral tax if they leave the country won't inspire them to stay Personal Finance Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Trump isolation deepens on world stage as allies rebuff, condemn PMN Business The Great Correction: Not even Wayne Gretzky's hometown could escape the crash of the 'exurbs' Real Estate Posthaste: What Mark Carney's gas tax cut could mean for the Bank of Canada News What is Anthropic's Mythos AI model and why does it have the financial world in a panic? Innovation Forcing people to pay a moral tax if they leave the country won't inspire them to stay Personal Finance