Pakistan's state-owned energy producer is preparing to increase domestic output as disruptions in Middle Eastern supply chains threaten liquefied natural gas availability.

Oil and Gas Development Company Limited (OGDCL) plans to raise natural gas production by 5% to 865 million cubic feet per day, marking its first such increase in recent years. The move comes amid supply uncertainties triggered by geopolitical tensions in the region.

The disruption follows a halt in LNG production in Qatar after Iran targeted the country in the wake of recent U.S.-Israeli strikes. The development has heightened concerns over fuel supply routes, particularly through the Strait of Hormuz, a critical shipping corridor.

Alongside gas output, OGDCL is also aiming to expand crude oil production by 14%, targeting 40,000 barrels per day. The increase reflects an effort to offset potential import constraints and stabilise domestic energy availability.

According to Ahmed Lak, further increases could be achieved through new discoveries, though actual output would depend on demand from buyers. In recent years, consumption of natural gas has weakened due to higher electricity tariffs and the growing adoption of rooftop solar systems, prompting renegotiations of LNG import contracts.

Industry sources indicate that Pakistan is also considering reducing LNG terminal regasification in response to undelivered Qatari cargoes. Such a move could help ease pressure on foreign exchange reserves.

The developments highlight a shift towards greater reliance on domestic production as external supply risks intensify.