Pakistan Seeks Direct LNG Imports Amid Ongoing Supply Disruptions

Pakistan is studying a proposal to allow power plants and private companies to directly import spot-market liquefied natural gas (LNG), in an attempt to expand supply options while the disruption of cargoes from Qatar continues.

The Energy Ministry's plan contemplates relaxing current regulations, which have limited private operators' access to the spot market. This move comes after the disruption of contracted supplies from Qatar forced Pakistan to turn more frequently to the international market to cover its needs.

The regulatory modification would allow more participants to bid directly in LNG cargo auctions and use capacity that remains available at the country's two import terminals. However, a larger number of buyers does not necessarily imply an immediate reduction in prices. Spot imports remain exposed to global cargo availability, maritime transport costs, and conditions on major trade routes.

The crisis has exposed Pakistan's dependence on Qatar, which declared force majeure on certain deliveries after attacks affected its LNG export infrastructure at Ras Laffan. Subsequently, state company QatarEnergy extended force majeure on some supplies destined for Asian and European buyers, maintaining pressure on markets that depend on those cargoes.