KARACHI: The government is considering allowing power plants and other private companies to directly import liquefied natural gas (LNG) as Pakistan seeks to strengthen energy supplies without placing additional pressure on public finances, according to a person familiar with the matter.
The proposal comes as two of Pakistan’s LNG import terminals have remained largely idle since March following disruptions to shipments from Qatar, the country’s largest LNG supplier, amid the conflict in the Middle East, according to a Bloomberg report.
Under existing regulations, buyers other than state-owned Pakistan LNG Ltd (PLL) face restrictions in procuring LNG cargoes from the international spot market.
The Petroleum Division of the Ministry of Energy has submitted a proposal to significantly expand the auctioning of unused capacity at LNG terminals and allow private-sector companies to import LNG directly, the person said, requesting anonymity because the details are not public.
A director general of the Petroleum Division did not immediately respond to a request for comment.
Pakistan GasPort Ltd, which operates one of the country’s LNG import terminals, has previously called for non-state entities to be allowed to import LNG directly.
Pakistan is facing energy supply challenges, including power shortages and fuel constraints, as disruptions around the Strait of Hormuz have severely affected LNG deliveries.
The country has been procuring some LNG cargoes from the international spot market to compensate for reduced supplies from Qatar. However, spot-market prices have risen to more than twice their pre-conflict levels, increasing pressure on government finances.
Allowing private companies to directly procure LNG could provide additional flexibility in utilising the country’s existing import-terminal capacity and sourcing gas from international markets.
