Pakistan Considers Direct LNG Imports as Energy Crisis Deepens

Pakistan’s government is considering allowing power plants and private companies to directly import liquefied natural gas (LNG) from the spot market as the country struggles with an energy crisis linked to disruptions in Qatar’s LNG supplies.

The proposal, put forward by Pakistan’s Energy Ministry, would ease existing regulations that currently restrict private companies from directly purchasing LNG on the international spot market.

Pakistan has traditionally relied heavily on long-term LNG supplies from Qatar. However, disruptions caused by the ongoing Iran war and damage to Qatar’s Ras Laffan LNG export hub have forced the country to seek more expensive spot-market supplies.

The resulting increase in LNG prices has raised Pakistan’s power-generation costs and placed additional pressure on the government’s energy-import bill.

Under the proposed changes, private companies could participate more directly in auctions for LNG cargoes and unused capacity at Pakistan’s two LNG import terminals. Officials hope this could increase competition and reduce the government’s procurement burden.

Qatar has also extended its force majeure on LNG deliveries to Asia and Europe until the end of November, as shipping through the Strait of Hormuz remains severely disrupted.

Pakistan’s move comes as the prolonged Hormuz crisis continues to affect LNG supplies, energy prices and electricity generation across the region.

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