The Houston Chronicle recently reported on Pakistan’s increasing role as an exporter of U.S. LNG. The country has faced unrest in the region, government corruption, and unreliable energy sources for decades. But new Pakistani leadership is attempting to launch the country onto the world stage. Reliable energy from the United States could go a long way in boosting the Pakistani economy. Pakistan’s U.S. Ambassador Asad Majeed Khan said:
“The convenience of its use, its environmentally friendly use, and also the rates, I think make LNG an attractive option for Pakistan. There is huge demand.”
The article further described the market for natural gas and how Pakistan fits in:
LNG prices are particularly low these days due to abundant supplies and slipping demand, in part a result of mild winters in much of the world and the impact of the coronavirus on the Chinese economy. Large supplies of gas in Texas shale deposits and increasing demand for cheap, cleaner burning fuels spurred Houston-area companies to look abroad for customers.
A few years ago, Cheniere Energy of Houston became the first company in the continental United States to export LNG.
Pakistan needs cheap, reliable energy that can easily integrate with existing pipelines, storage terminals and other infrastructure. Because the country has depleted much of its compressed natural gas reserves, and sanctions on Iran have reduced natural gas imports, the country is beginning to import LNG from the United States.
Thanks to record American natural gas production and significant investment in LNG export terminals along the Gulf Coast, the U.S. is well-positioned to supply Pakistan with reliable, affordable, cleaner-burning natural gas. More than 50 million Pakistanis did not have access to electricity in 2017, and more than half of the population uses biomass, including wood and animal waste, for cooking due to natural gas and electricity shortages.
The Chronicle points out LNG, paired with foreign investment from Pakistani Americans, could be a key driver in bolstering Pakistan’s economy and securing a successful future.