Key Takeaways
- Pakistan is considering a proposal to allow private companies to import liquefied natural gas (LNG) directly.
- The move aims to secure energy supplies without increasing financial pressure on the state.
- Pakistan's two LNG terminals have been idle since March due to supply disruptions from Qatar.
Pakistan is considering a proposal to allow private companies to import liquefied natural gas (LNG) directly, according to a report by Bloomberg. The move is part of efforts to secure energy supplies without adding further pressure on state finances.
The proposal, submitted by the Petroleum Division of the Ministry of Energy, seeks to expand the auction of unused capacity at Pakistan’s two LNG import terminals and permit private companies to procure LNG directly.
Pakistan’s two LNG terminals have remained mostly idle since March, following disruptions in supplies from Qatar, the country’s main LNG supplier. The conflict in the Middle East has affected gas shipments, leading to the cancellation of a Qatari LNG shipment scheduled for July 2026 and the declaration of force majeure by Qatar.
Existing regulations make it difficult for buyers other than state-owned Pakistan LNG Limited to purchase cargoes from the spot market. Pakistan GasPort Limited, which operates one of the country’s LNG terminals, has previously called for non-state-owned companies to be allowed to import LNG.
The disruption in the Strait of Hormuz has forced Pakistan to seek emergency LNG supplies and consider alternative fuels and higher-priced spot cargoes. Earlier this month, Petroleum Minister Ali Pervaiz Malik warned that fuel prices could reach Rs. 1,000 per liter if a shortage develops.
The proposal has not yet been confirmed by government sources, but it is seen as a potential solution to the current energy crisis. If implemented, it could provide a more flexible and cost-effective way to import LNG, reducing the financial burden on the state.
Pakistan relies heavily on long-term LNG supply agreements with Qatar for relatively stable supplies. However, the recent disruptions have highlighted the need for alternative procurement methods. The proposal aims to address this by allowing private companies to participate in the LNG import market.
The move is part of a broader strategy to diversify energy sources and reduce dependence on state-owned entities. It could also provide a boost to private sector participation in the energy sector, potentially leading to more competitive pricing and improved supply chain management.
