ISLAMABAD: The federal government is considering importing liquefied natural gas (LNG) worth approximately $2 billion to meet rising winter demand, as delays in approval raise concerns about potential gas shortages and disruptions to industrial activity.
The Petroleum Division has urged authorities to begin procurement of 22 LNG cargoes, including supplies potentially sourced from the United States and Azerbaijan. However, the Cabinet Committee on Energy (CCoE) has yet to approve the proposal.
Officials warned that further delays could force the government to curtail gas supplies to industries, power plants, fertiliser producers, cement factories and compressed natural gas (CNG) stations to prioritise household consumers.
The government initially expected to receive 11 cargoes from Qatar under long-term agreements. However, regional tensions and Qatar’s extended force majeure have created uncertainty over deliveries, potentially forcing Pakistan to purchase more expensive LNG from international spot markets.
Each cargo could cost an average of $87 million, pushing the estimated import bill close to $2 billion for November through February.
Meanwhile, gas demand is projected to rise sharply during winter, increasing from 850 million cubic feet per day to approximately 1,600 million cubic feet per day.
Authorities also warned that disruptions to fertiliser production could create a monthly urea shortfall of 109,000 tonnes. The government faces a difficult choice between securing costly LNG supplies and protecting foreign exchange reserves while preventing winter shortages.
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