Lucky Group, Qatar Energy consortium quits Port Qasim LNG terminal plan over 'policy changes'

Energas, a joint venture between the Lucky Group and Qatar Energy, has abandoned its ambitious plan to build a liquefied natural gas (LNG) terminal at Port Qasim due to significant shifts in Pakistan's energy policy, the company disclosed on Friday. Port Qasim Authority (PQA) has threatened to revoke Energas's final letter of intent (LOI) if unconditional acceptance of the agreement is not received by November 30, 2026, thereby forfeiting the $2 million initial concession fee paid by Energas.

Energas has subsequently sought a refund of the $2 million from the Pakistani government, attributing its decision to the government's failure to address critical policy and fiscal matters that have impeded the project's viability. Qatar Energy has reportedly booked an LNG terminal and committed to supplying additional LNG quantities at a rate of around 10.2pc of Brent, aiming to ensure the terminal's full utilization.

The consortium had initially pursued the project upon Pakistan's approval of policy changes in August 2022, designed to facilitate private sector participation in the LNG sector. However, ongoing changes in the national energy policy and unresolved issues with the government have thwarted the project's progress over the past three years.

Energas's chairman, Muhammad Ali Tabba, has expressed frustration over the government's inability to resolve these issues, which could have led to a final investment decision by Qatar Energy and Pakistani partners. The government's official Integrated Energy Study of March 2025 confirmed that no new LNG terminals are required in the next five years, further undermining the project's economic rationale.