Pakistan Loses Qatar LNG Project

The Energas consortium, comprising the Lucky Group and Qatar Energy, has abandoned its plan to construct a liquefied natural gas (LNG) terminal at Port Qasim in Pakistan. This decision stems from changes in Pakistan's energy policy and unresolved fiscal matters. In response, the Port Qasim Authority (PQA) has threatened to revoke the project's final letter of intent (LOI) unless Energas provides unconditional acceptance by November 30, 2026.

If this occurs, Energas will also forfeit the $2 million concession fee it paid for the project. Energas chairman Muhammad Ali Tabba has written to Prime Minister Shehbaz Sharif requesting a refund of the $2 million. Tabba explained that the self-funded project was initiated with the best intentions to address Pakistan's energy requirements at the time.

However, he cited recent developments, including the government's Integrated Energy Study of March 2025, which concluded that no new LNG terminals were necessary for the next five years. Additionally, Tabba pointed out that the five-year tax holiday for new terminals was revoked in June 2021 under conditions set by the International Monetary Fund (IMF).

Further complicating the situation, Energas stated that issues related to pipeline capacity, gas transportation agreements, and exemptions for third-party access remained unresolved, despite the government's assurances to resolve these matters. Despite these concerns, PQA maintains that the $2 million is not refundable, classifying it as a concession fee rather than a refundable deposit.

They also argue that approvals, studies, and financing are responsibilities solely borne by the developer. Qatar Energy, a stakeholder in the project, committed to supplying LNG at approximately 10.2 percent of Brent prices to ensure the terminal's full utilization.