Govt May Allow Private LNG Imports

Pakistan is considering allowing power plants and other private firms to directly import liquefied natural gas as the administration seeks to secure energy supplies without adding further pressure on state finances, Bloomberg documented.

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• Refineries Still Finalizing Feasibility Studies After Signing $4.2 Billion Upgrade Deals.
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• The country has faced disruptions to LNG supplies as the Gulf War and the near closure of the Strait of Hormuz have affected gas shipments.
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• Existing regulations create it challenging for buyers other than state-owned Pakistan LNG Limited to purchase cargoes from the spot market.

For context, the Petroleum Division of the Ministry of Energy has submitted a proposal to expand the auction of unused capacity at Pakistan's two LNG import terminals and allow private firms to procure LNG directly. NEPRA Considers Next Electricity Nightmare for Farmers.

For context, the proposal comes as Pakistan's two LNG terminals have remained mostly idle since March after the conflict in the Middle East disrupted supplies from Qatar, the country's main LNG supplier. Existing regulations create it challenging 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 pressed non-state-owned businesses to be allowed to import LNG.

Meanwhile, the country has faced disruptions to LNG supplies as the Gulf War and the near closure of the Strait of Hormuz have affected gas shipments. Pakistan has purchased some LNG cargoes from the spot market to replace disrupted Qatari supplies, but rates have risen to more than twice their prewar levels.

Pakistan relies heavily on long-term LNG supply agreements with Qatar for relatively stable supplies. While Qatar subsequently declared force majeure, the disruption in the Strait of Hormuz led to the cancellation of a Qatari LNG shipment scheduled for July 2026.

In practice, the supply disruptions have forced Pakistan to seek emergency LNG supplies and consider alternative fuels and higher-priced spot cargoes. Earlier this month, Petroleum Minister Ali Pervaiz Malik cautioned that fuel costs could reach Rs. 1, 000 per liter if a shortage develops.

Meanwhile, the Petroleum Division's proposal has not yet been confirmed by administration sources. Stay Connected with ProPakistani.

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Taken together, the developments around govt May Allow Private LNG Imports point to a situation that is still moving, and the coming days should bring more clarity.