How OGDC is filling the gap left by the Middle East crisis

March 05, 2026 (MLN): In a significant reversal of recent trends, Pakistan’s state energy firm, Oil & Gas Development Company Limited (PSX:OGDC), is preparing to ramp up domestic production to shield the national economy from a deepening energy crisis in the Middle East.

For several years, a surge in rooftop solar installations and high electricity costs had dampened the domestic appetite for natural gas, even leading the country to scale back local output and adjust long-term import deals.

However, the landscape shifted abruptly this week after Iranian strikes on Qatari energy facilities led to a total halt in Qatar’s LNG production, as per Reuters.

With critical maritime routes like the Strait of Hormuz now facing severe transit threats, Pakistan is pivotally shifting its focus back to indigenous fuel sources to maintain stability.

To bridge the looming supply gap, OGDC has set a target to increase its natural gas output by 5%, aiming for a daily volume of 865 million cubic feet.

The company is also fast-tracking efforts to boost crude oil production by 14%, with a goal of reaching 40,000 barrels per day.

These efforts are further supported by a major new discovery in the Kohat region, which Managing Director Ahmed Lak noted could be quickly commercialized if domestic buyers are ready to increase their intake.

By maximizing local resources, the company hopes to provide a reliable alternative to the volatile international market.

On a broader policy level, industry experts, according to Reuters, suggest that the government is evaluating a reduction in LNG regasification activities at its terminals.

This potential downscaling is a direct response to the suspension of Qatari shipments and is viewed as a vital strategy to protect Pakistan’s fragile foreign exchange reserves.

By substituting expensive, undelivered imports with increased local output, the country aims to mitigate the economic shock of the regional conflict while ensuring that the national energy grid remains operational during this period of extreme global uncertainty.

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