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

Dawn · 26/10/2026، 2:53:11 PM

ISLAMABAD: Energas, a consortium of the Lucky Group and Qatar Energy, has given up a multi-million-dollar plan to establish a liquefied natural gas (LNG) terminal at Port Qasim, citing fundamental changes to Pakistan’s energy policy, requirements and longstanding unresolved policy and fiscal matters, it emerged on Monday. On the other hand, the Port Qasim Authority (PQA) has warned Energas of terminating its final letter of intent (LOI) unless an “unconditional acceptance” is received on or before Nov 30, 2026, along with an updated status of the project. This would also result in forfeiture of the $2 million initial concession fee, PQA said. Subsequently, Energas has approached the prime minister for the refund of $2m, absolving it of any contractual lapse and instead blaming the government and factors beyond its control for not moving ahead. Informed sources told Dawn that Qatar Energy had booked an LNG terminal and committed to supply additional LNG quantities at around 10.2pc of Brent — almost the same rate it contracted to Pakistan State Oil under a second-term contract — to ensure full utilisation of terminal capacity on its own. Qatar has been seeking pipeline capacity allocation for LNG transportation through the terminal it planned with local partners near Karachi, a level playing field for LNG marketing and a terminal, and exemption from third-party access (TPA) that requires certain terminal capacity for use by government entities. Ahead of Prime Minister Shehbaz Sharif’s August 2022 visit to Qatar , Pakistan approved changes to the LNG policy to remove restrictions on upcoming private sector LNG terminals to provide their part capacity to the government. These were officially conveyed to the Qatari counterpart by then-petroleum minister Musadik Malik for re-engaging on LNG sector cooperation, including speedy completion of the LNG terminal and another long-term contract for more gas supplies on top of two existing long-term contracts, in addition to LPG