Pakistan Loses Qatar LNG Project

Energas, a consortium of Lucky Group and Qatar Energy, has pulled out of its plan to build a liquefied natural gas (LNG) terminal at Port Qasim, blaming changes in Pakistan's energy policy and unresolved fiscal problems.

Key points

• Pakistan Receives Its Largest Ever LNG Cargo at Engro Terminal in Port Qasim.
• Energas chairman Muhammad Ali Tabba has written to Prime Minister Shehbaz Sharif asking for the $2 million to be refunded.
• It remarked the $2 million was a concession fee, not a refundable advance, and could be forfeited under the 2019 Project Guidelines.
• He pointed to the government's Integrated Energy Study of March 2025.
• If that happens, Energas will additionally lose the $2 million concession fee it paid.

Notably, the Port Qasim Authority (PQA) has now cautioned Energas that it will cancel the project's final letter of intent (LOI) unless the business gives its unconditional acceptance by November 30, 2026. If that happens, Energas will additionally lose the $2 million concession fee it paid.

Pakistan Receives Its Largest Ever LNG Cargo at Engro Terminal in Port Qasim. Why Energas Walked Away.

In his letter, Tabba remarked the self-funded project was rolled out in good faith to meet Pakistan's energy needs at the time. It have since changed.

He pointed to the government's Integrated Energy Study of March 2025. It remarked no new LNG terminals were needed for the next five years. He additionally stated the five-year tax holiday for new terminals was withdrawn in June 2021 under IMF conditions.

According to Energas, pipeline capacity, gas transportation agreements, and third-party access exemptions additionally remained unresolved, despite the administration promising to clear these hurdles. LPG Rates Remain Out of Reach in A number of Pakistani Cities. PQA Notes Fee Is Not Refundable.

Notably, the PQA rejected the refund request. It remarked the $2 million was a concession fee, not a refundable advance, and could be forfeited under the 2019 Project Guidelines.

It continued that approvals, studies, and financing were the developer's own responsibility.

Qatar Energy had joined the project as a stakeholder and had committed to supply extra LNG at around 10.2 percent of Brent to keep the terminal fully applied. Stay Connected with ProPakistani.

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In short, pakistan Loses Qatar LNG Project is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.