Pakistan is considering allowing power plants and other private companies to directly import liquefied natural gas (LNG) as the government looks for ways to secure energy supplies while limiting pressure on public finances, Bloomberg reported Wednesday, citing a person familiar with the matter.
The Petroleum Division of the Ministry of Energy has proposed expanding the auction of unused capacity at Pakistan’s two LNG import terminals and allowing private companies to purchase LNG directly, according to the report.
The proposal comes after both LNG terminals remained largely underutilized since March as the conflict in the Middle East disrupted supplies from Qatar, Pakistan’s main LNG supplier. Current regulations make it difficult for companies other than state-owned Pakistan LNG Limited to buy LNG cargoes from the spot market.
Pakistan GasPort Limited, which operates one of the country’s LNG terminals, has previously urged the government to allow private companies to import LNG.
LNG supplies have faced further disruption as fighting in the region and restrictions around the Strait of Hormuz have affected shipments. Pakistan has turned to the spot market to replace some of the disrupted Qatari supplies, but LNG prices have risen to more than twice their prewar levels, adding to pressure on government finances.
Pakistan has traditionally relied on long-term LNG agreements with Qatar to maintain relatively stable supplies. The disruption around the Strait of Hormuz resulted in the cancellation of a Qatari LNG cargo scheduled for July 2026, after which Qatar declared force majeure.
The supply disruptions have pushed Pakistan to seek emergency LNG cargoes, consider alternative fuels and rely on more expensive spot-market purchases. Earlier this month, Petroleum Minister Ali Pervaiz Malik warned that petrol prices could reach Rs. 1,000 per liter if a fuel shortage develops, while stating that there was no shortage at the time.
The Petroleum Division’s proposal has not yet been formally approved or confirmed by the government.
