Pakistan mulls allowing private firms to directly import LNG: report

The government, in order to avoid further financial strain, is considering allowing power plants and other private companies to directly import liquefied natural gas (LNG), Bloomberg reported on Wednesday, citing a person familiar with the matter.

According to the report, two of Pakistan’s LNG import terminals have been mostly idle since March, as flows from Qatar have halted due to the ongoing conflict in the Middle East.

It said existing regulations make it difficult for buyers, other than state-owned Pakistan LNG Limited, to procure cargoes from the spot market.

Pakistan secures another Qatari LNG cargo

According to Bloomberg, the Petroleum Division of the Ministry of Energy has submitted a proposal to greatly increase the scope to auction unused capacity at the terminals and allow private companies to import LNG directly.

Pakistan is currently facing significant challenges in securing LNG deliveries due to geopolitical disruptions and high spot market prices.

Pakistan heavily depends on its long-term supply deals with Qatar for stable and more affordable LNG.

However, renewed hostilities in the Strait of Hormuz led to the cancellation of a Qatari LNG shipment scheduled for July 2026 and prompted Qatar to declare force majeure, disrupting LNG imports. This situation forced Pakistan to seek emergency supplies and look for alternative fuels or expensive spot cargoes.

Earlier this month, Pakistan’s Petroleum Minister Ali Pervaiz Malik warned that the price of fuel could rise to Rs1,000 per litre if a shortage develops, while saying there was currently no fuel shortage in the country.