Pakistan plans to allow private enterprises to directly import LNG, with idle capacities at two receiving terminals potentially subject to expanded auctions.

(1) According to sources familiar with the matter, Pakistan is considering allowing power plants and other private companies to directly import liquefied natural gas (LNG). (2) The government hopes this move will stabilize the country's energy supply while avoiding further pressure on public finances. (3) Since March, two of Pakistan’s LNG terminals have been largely idle. Middle East conflicts have almost completely severed gas supplies from its largest supplier, Qatar. (4) Under current regulations, import restrictions are significant, making it very difficult for buyers other than the state-owned Pakistan LNG Limited to procure LNG cargoes from the spot market. (5) Sources said the Petroleum Division of Pakistan’s Ministry of Energy has submitted a proposal to substantially expand the scope of auctions for idle terminal capacity and to allow private enterprises to directly import LNG. (6) This information has not yet been disclosed to the public. A director general of the Petroleum Division has not yet responded to a request for comment.