Markets Print edition: 2026-06-12

‘29.7pc drop in LNG import volumes delays decisions on new terminals’

Published June 12, 2026 Updated June 12, 2026 06:51am

3 min

By Wasim Iqbal

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ISLAMABAD: A 29.7 percent drop in LNG import volumes has prompted prospective investors to delay decisions on constructing new terminals.

At the same time, a lack of new discoveries has caused domestic natural gas production to fall by 3.7 percent, tightening the country’s overall energy outlook, reveals Pakistan Economic Survey 2025-26.

“Oil and Gas Regulatory Authority (OGRA) has granted construction licenses to two private sector companies i.e. Energas Terminal Private Limited (ETPL) and Tabeer Energy (Private) Limited (TEPL). They have however not taken the final investment decisions (FID) so far”, noted the Economic Survey.

The oil and gas regulator has granted four provisional licenses (out of which only one is valid at the instant) for virtual pipeline projects to facilitate in completing the formalities required for the application of a construction/ installation license.

Moreover, M/s LNG Easy (Private) Limited has been granted a construction license to develop the project; the company has yet to take a Final Investment Decision (FID).

Despite a 29.7 percent reduction in volume, LNG still accounted for 15.2 percent of the country’s total imports during the first nine months of the current fiscal year (July–March). The drop in LNG imports reflects declining demand for gas-based power, a growing contribution from alternative energy sources like solar, and more efficient energy demand management.

Once these terminals are built and are operational, the government is hoping to add approximately 1.52 BCFD of re-gasification capacity, which will help mitigate the natural gas demand supply gap, according to the Survey.

The average natural gas consumption was about 2,929 Million Cubic Feet per day (MMCFD) including 613 MMCFD volume of RLNG during July to March 2026. In same period, the two gas utility companies (SNGPL and SSGCL) have laid 729 Km Mains and 403 Km Services lines and connected 95 villages/towns to the gas network. During this period, 149,908 additional RLNG based gas connections including 148,225 domestic, 1,578 commercial and 105 industrial were provided across the country.

It is expected that gas will be supplied to approximately 708,245 new consumers (during the FY 2027) Gas utility companies have planned to invest Rs 4,491 million on Transmission projects, Rs 87,457 million on Distribution Projects and Rs 10,810 million on other projects bringing the total investment of Rs 102,758 million during the FY 2027.

While, oil production in the country dropped by 0.6 percent, petroleum imports remained the largest component of import bill, accounting for 22.2 percent of total imports during July-March FY 2026. Despite their large share, petroleum imports declined by 5.9 percent to US $ 11.2 billion, helping contain overall import pressures.

During July-March FY 2026, total consumption of petroleum products stood at 13.64 million metric tonnes (MMT), registering a year-on-year increase of 3.5 percent compared to 13.17 MMT during the same period of FY 2025.

The Strait of Hormuz, through which nearly 25-30 percent of global oil trade and around 20 percent of liquefied natural gas (LNG) shipments pass, remains critically important for energy-importing economies in Asia and Europe. And given the critical importance of crude oil and petroleum products for the country, SBP allowed import of Crude Oil/ Petroleum Products on CIF (cost, insurance, freight) basis for a period of sixty (60) days - making procurement easier and avoiding delays in shipment during periods of market uncertainty.

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