Pakistan Considers Direct LNG Imports Amid Qatar Disruptions

Pakistan is considering changes to its rules regarding liquefied natural gas (LNG) imports as QatarEnergy's supply disruptions put pressure on the country's electricity system and public finances.

The Energy Ministry's petroleum division has proposed allowing private power producers and other companies to import LNG directly, which would also enable them to use unutilized capacity at the country's two LNG import terminals.

This change would shift some of the responsibility for LNG procurement from the state to private buyers. However, it is unclear whether this will be effective, as buyers will still need to secure cargoes and obtain terminal access while dealing with volatile spot-market prices.

Pakistan State Oil has imported over 400 LNG cargoes totaling more than 27 million metric tonnes since 2015 through various means, including spot purchases and government-to-government contracts. Some industry experts suggest that Pakistan could explore alternative suppliers, such as the US, to break its dependence on traditional Middle Eastern providers.