Govt considers allowing private firms to directly import LNG

Pakistan is considering allowing private companies, including power producers, to directly import liquefied natural gas (LNG) as the government seeks to strengthen energy supplies without adding pressure on public finances.

 

The Petroleum Division has reportedly proposed expanding access to unused capacity at the country’s two LNG import terminals and allowing private firms to procure LNG cargoes directly from the spot market.

 

The terminals have remained largely underutilised since March after disruptions to LNG flows from Qatar, Pakistan’s main supplier, amid the Middle East conflict and restrictions around the Strait of Hormuz.

 

Current regulations largely limit spot-market LNG procurement to state-owned Pakistan LNG Ltd, restricting other buyers from directly securing cargoes.

 

The proposed changes could allow unused terminal capacity to be auctioned to private companies, potentially widening access to LNG imports.

 

Pakistan has faced fuel shortages and power disruptions as reduced LNG supplies have affected the energy system. Although the country has secured some replacement cargoes from the spot market, LNG prices remain significantly above pre-conflict levels, increasing pressure on government finances.