Azerbaijan is set to begin supplying LNG to Pakistan next month, claiming it will be at a “cheap” price. However, the term “cheap” may be misleading. As a result of reduced domestic natural gas production, policymakers in Pakistan are turning to LNG to meet the nation’s energy needs. Despite its reputation as a “bridge fuel” to cleaner and more affordable energy sources, LNG has inadvertently pushed Pakistan to rely on dirtier and more polluting fuels when natural gas prices spike. For instance, during price surges, cement factories in Pakistan have resorted to purchasing coal from Afghanistan, exacerbating pollution levels (Bloomberg, Pakistan’s Energy Crunch Spurs ‘Barter’ Trade for Afghani Coal, March 28, 2022). Flight To New York Cancelled Shortly Before Takeoff As Pilot Showed Up Drunk IndiGo To Buy 500 Airbus Planes, Breaks Air India’s Record Aircraft Order For more such Opinions, click here. The growing dependence on LNG is not only increasing the fuel bill but also straining the country’s foreign currency reserves. Prior to importing LNG, the balance sheets of gas distribution companies were manageable. However, the increased use of LNG, which is not only expensive but also leads to significant line losses, results in a substantial financial burden … Continue reading Is Cheap LNG from Baku Really Cheap?