Pakistan is considering allowing power plants and other private companies to directly import liquefied natural gas (LNG) as the government looks to strengthen energy supplies without putting additional pressure on state finances.
The Petroleum Division has proposed expanding the auction of unused capacity at the country’s two LNG import terminals and allowing private-sector companies to procure LNG directly. The proposal comes as the terminals have remained largely idle since March following disruptions to LNG supplies from Qatar amid the Middle East conflict.
Pakistan currently relies heavily on long-term LNG agreements with Qatar, but disruptions around the Strait of Hormuz have affected shipments. A Qatari LNG cargo scheduled for July was cancelled, while Qatar later declared force majeure. Pakistan has since turned to emergency and spot-market LNG purchases, where prices have risen sharply.
Existing regulations make it difficult for private buyers to purchase LNG from the spot market, with Pakistan LNG Limited playing a central role in procurement. Pakistan GasPort Limited has previously called for non-state-owned companies to be allowed to import LNG directly.
The latest proposal has not yet been formally approved or confirmed by the government. Meanwhile, Pakistan continues to explore alternative fuel supplies as LNG disruptions raise concerns over energy availability and costs.
