Govt considers allowing private firms to directly import LNG: report

Business Recorder reported that Pakistan is considering letting power plants and other private firms import liquefied natural gas (LNG) directly, citing an individual with knowledge of the matter. The step is being examined as a way to strengthen energy supplies without placing further strain on public finances. The source requested anonymity because the details have not been made public.

A Bloomberg report cited by Business Recorder says two LNG import terminals have been largely idle since March, when the Middle East conflict nearly stopped shipments from Qatar, the country's biggest LNG supplier. Existing rules make it difficult for anyone except the state-owned Pakistan LNG Ltd to buy spot cargoes. The Energy Ministry's petroleum division has sent a plan that would widen the auction of unused terminal capacity and open direct imports to private companies.

Pakistan GasPort Ltd, which runs one of the terminals, has long argued that non-state firms like itself should be permitted to import LNG. The country has faced rolling outages and a fuel shortfall after the near closure of the Strait of Hormuz to gas vessels sharply reduced LNG deliveries. Although Pakistan has bought some spot cargoes to replace lost Qatari supplies, the price of those shipments is now over twice the pre-war level, adding to pressure on government finances.