Pakistan and QatarEnergy consortium abandon Port Qasim LNG project

The Energas consortium, consisting of Pakistan’s Lucky Group and QatarEnergy, has abandoned plans to build a $2 billion liquefied natural gas (LNG) terminal at Port Qasim. The consortium cited shifts in national energy policy, unresolved regulatory hurdles, and concerns regarding the project’s commercial viability as primary reasons for the withdrawal.

Key unresolved issues reportedly include pipeline capacity allocation, gas transportation agreements, access to terminal tie-in areas, and necessary tax incentives. Energas Chairman Muhammad Ali Tabba has approached Prime Minister Shehbaz Sharif to request a refund of the $2 million initial concession fee and to seek absolution from contractual liabilities.

Separately, Pakistan’s petroleum minister, Musadik Malik, indicated that the country intends to renegotiate existing LNG supply pacts with Qatar to secure better terms. This move comes as an economic crisis has reduced domestic power consumption, leading to a surplus of LNG and high costs associated with decade-old contracts.