Pakistan Considers Allowing Private Firms to Import LNG Amid Hormuz Tensions

Pakistan is considering a plan to allow private companies to directly import liquefied natural gas (LNG) as it seeks to shore up energy supplies without straining state finances. According to a Bloomberg report, two LNG import terminals in the country have remained largely idle since March, when the conflict in the Middle East halted shipments from Qatar, Pakistan's largest LNG supplier. Existing regulations only allow state-owned Pakistan LNG Ltd to procure cargoes from the spot market.

The Energy Ministry's petroleum division has submitted a proposal to increase the scope of auctioning unused capacity at the terminals and allow private companies to import LNG directly. This move is aimed at addressing Pakistan's energy crisis, which has led to rolling blackouts and fuel shortages due to the near-closure of the Strait of Hormuz for gas vessels.

Prices of spot LNG cargoes have more than doubled since the conflict began, putting a strain on government finances. Pakistan received a boost to its LNG supplies after a Qatari cargo carrying 81,936 metric tonnes of liquefied natural gas docked at Port Qasim earlier this month.