Pakistan, as well as Bangladesh, is rationing gas and buyers across South Asia are seeking alternative fuels after spot liquefied natural gas (LNG) prices surged to record highs, government and industry officials told Reuters.
Spot LNG prices have nearly tripled since early November as freezing temperatures across North Asia boosted demand and depleted inventories. Since July, prices are up a dizzying 1,000 per cent.
Gas-fired power plants and industries across the region are scrimping on gas, with the scramble for other fuels driving up demand for liquefied petroleum gas (LPG) and residue oil.
Pakistan, which is more reliant on spot LNG imports for its winter needs, is limiting gas use for industry to certain hours and industry executives have warned the situation has become critical.