Pakistan is moving away from liquefied natural gas (LNG) imports as a central part of its energy strategy, signalling a major policy shift for a nation once seen as a rapidly expanding LNG buyer.
According to Petroleum Minister Ali Pervaiz Malik, this transition reflects a broader effort to adapt to changing global energy dynamics and domestic constraints. LNG shipments to Pakistan, which peaked in 2021, have steadily declined due to soaring global prices following Russia’s invasion of Ukraine. Ship-tracking data indicates a 5% drop in LNG deliveries this year, with further reductions expected as the government negotiates lower volumes with suppliers.
“This is not a temporary blip; we have to readjust our strategy,” Malik said in Islamabad.
A decade ago, Pakistan had ambitious plans to expand LNG imports to compensate for declining domestic gas production. However, that vision has been derailed by high LNG prices and reduced power demand, largely due to government measures to secure IMF loans through increased electricity tariffs.
While new power projects are in development, Malik emphasised that LNG will not play a role in them due to its continued high cost. Pakistan remains tied to long-term contracts, particularly with Qatar, its largest LNG supplier. Malik recently met Qatari officials to discuss delaying shipments over the next five years, a move aimed at easing financial pressure.
Pakistan’s agreement with Eni SpA offers more flexibility, allowing the country to resell surplus LNG on the spot market and share profits. Meanwhile, the government is focusing on incentivising domestic gas exploration to meet growing energy demand sustainably.
Malik noted that increasing local gas output could offset declining LNG imports, reduce energy costs, and help relieve the country’s debt burden. “Our focus is now on local resources to ensure long-term energy security,” he added.
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