Pakistan’s solar boom prompts calls to rethink costly LNG contracts

Lawmakers and energy specialists want authorities to re-examine long-term energy agreements, warning that take-or-pay clauses could saddle Pakistan with costly obligations and deepen circular debt. Their case rests on the idea that LNG and other fuel imports need more room to adjust as rapid solar growth changes national energy demand. The views emerged at a dialogue in Islamabad hosted by the Parliamentary Forum on Energy and Economy.

Profit reported that solar installations now total an estimated 50 gigawatts nationally, built in only a few years and largely without public subsidies. That capacity is estimated to yield roughly 54.75 terawatt-hours a year, which on a gross-energy footing amounts to almost 1,279 million cubic feet of gas-fired output daily. Speakers warned that this structural shift has left earlier planning assumptions for gas and LNG commitments outdated.

Barrister Danyal Chaudhry, Parliamentary Secretary for Information and Broadcasting, said solar and gas should be treated as partners, not rivals. Muhammad Arif, a former OGRA Member Gas, called for stronger integration in governance and mechanisms to use surplus solar output when generation peaks. Asim Riaz of APTMA said LNG is no longer just a supply question, because solar growth has reshaped when and how much RLNG is required. Syed Faizan Shah, adviser to the Power Minister, proposed battery storage and more indigenous solar to cut losses and shield consumers from fuel price swings.