Pakistan is considering a policy change that could allow power plants and other private companies to directly import liquefied natural gas (LNG), as the government looks for ways to strengthen energy supplies while limiting additional pressure on public finances.
According to Bloomberg, the proposal is part of broader efforts to make greater use of Pakistan’s existing LNG import infrastructure and expand the role of private sector buyers in securing natural gas supplies.
The Petroleum Division of Pakistan’s Ministry of Energy has submitted a proposal to expand the auction of unused capacity at the country’s two LNG import terminals. The plan would also allow private companies to procure LNG directly for their requirements.
Under the proposed arrangement, eligible private-sector entities, including power producers, could potentially arrange their own LNG purchases instead of relying entirely on government-led procurement. The approach could change how some consumers access imported gas.
Pakistan has traditionally relied heavily on government institutions to arrange LNG supplies, particularly for the power sector. Allowing private companies to participate more directly could provide another mechanism for meeting energy requirements.
The proposal comes as Pakistan continues to manage challenges related to energy costs, gas availability and public-sector finances. Imported LNG remains an important component of the country’s energy mix, particularly when domestic gas supplies are insufficient to meet demand.
The plan to auction unused capacity at LNG terminals could also help Pakistan make better use of infrastructure that is already available. Giving private companies access to spare terminal capacity may allow them to arrange imports according to their individual requirements.
For power plants, reliable access to LNG can be particularly important because gas-fired generation is an established part of Pakistan’s electricity system. Direct procurement could give some power producers greater flexibility when managing their fuel needs, depending on the final rules of the proposed policy.
However, private LNG imports would also depend on market conditions, international LNG prices, financing arrangements, terminal access and regulatory requirements. The actual impact would therefore depend on how the government structures the proposed system.
The Petroleum Division’s proposal represents a potential shift toward greater private-sector participation in Pakistan’s LNG market. If approved, the policy could create a new pathway for companies to secure imported gas without requiring the government to take on the same procurement role.
The move is also linked to the government’s efforts to manage energy-sector costs while maintaining adequate supplies. Expanding access to unused LNG terminal capacity could provide additional options for companies that need imported gas.
Any final decision will depend on government approval and the details of the policy framework. The proposal indicates that Pakistan is examining ways to use existing LNG infrastructure more efficiently while giving private companies a larger role in securing their energy supplies.
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