By Ayesha Saba
Pakistan LNG imports 2024 surged as domestic gas production continues to fall and energy demand rises. In fiscal year 2023-24, LNG imports rose 13 percent to 9.1 million tonnes of oil equivalent (Mtoe) while local gas output dropped 4 percent, putting extra pressure on the national gas network.
This shows how dependent the country has become on imported fuels, even with tight budgets and foreign exchange shortages.
The Pakistan Energy Market Review 2025 by Renewables First said domestic natural gas production averaged 3,117 million cubic feet per day (MMCFD) in FY24, continuing a decline that started in FY21.
Over the past five years, local gas output has fallen 13 percent as older fields in Sindh and Balochistan produce less and few new discoveries have been added. Meanwhile, LNG imports reached 451,391 million cubic feet, supplying 28 percent of national demand through regasification terminals at Port Qasim.
Key LNG Terminals and Companies Handling Imports
Two floating storage and regasification units—Engro Elengy Terminal Limited (EETL) and Pakistan GasPort Consortium Limited (PGPCL)—handled all incoming LNG.
Pakistan State Oil (PSO) imported LNG from Qatar under two long-term government deals, while Pakistan LNG Limited (PLL) bought cargoes via spot and short-term tenders. Together, these companies maintained a capacity of around 1,440 MMCFD, with average terminal tariffs between 0.41 and 0.48 dollars per MMBTU.
Global Oil Prices and LNG Costs
Pakistan’s LNG imports are linked to global oil prices, making them vulnerable to fluctuations. Delivered ex-ship (DES) rates averaged 11–13 dollars per MMBTU in FY24, while spot market prices sometimes spiked above 15 dollars per MMBTU. This pushed up the country’s import bill, especially with the falling rupee and higher shipping and regasification costs.
Long-Term LNG Contracts and Obligations
Long-term LNG contracts started in 2015 to tackle fuel shortages, with 15-year agreements signed with QatarGas (now Qatar Energy) and ENI of Italy. PSO and PLL are required to import 120 cargoes yearly—108 from Qatar and 12 from ENI.
Even if demand drops, Pakistan must pay for these shipments. In FY24, weaker power and industrial demand left the country with surplus LNG that traditional consumers could not fully use.
Diversion to Domestic Users and Financial Impact
To manage the extra supply, LNG was increasingly diverted to domestic users through Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC).
This kept the gas network flowing but came at a high cost since regasified LNG is far more expensive than local gas. As of September 2025, OGRA’s rates were 12.01 dollars per MMBTU for SNGPL and 11.01 dollars per MMBTU for SSGC—almost three times higher than domestic gas prices.
Fiscal Pressure and Foreign Exchange Burden
High LNG prices are straining household budgets and increasing government subsidies. Pakistan spent about 3.9 billion dollars on LNG in FY24, up from 3.8 billion the year before, despite lower global prices.
The increase came from higher import volumes and rupee depreciation. This makes LNG a major part of Pakistan’s energy import bill, leaving the economy exposed to global price swings and supply issues.
Experts warn that if domestic gas shortages continue while demand remains low due to high tariffs and weak industry growth, Pakistan could face an annual surplus of around 28 unused Qatar cargoes, reaching 177 cargoes by 2030 unless contracts are renegotiated or domestic demand rises.
The report highlights that Pakistan’s growing reliance on LNG reflects a lack of domestic gas development and a mismatch between contracted supply and actual demand. While LNG has helped maintain short-term energy security, the high costs, foreign exchange strain, and pricing gaps are unsustainable.
The Pakistan Energy Market Review 2025 by Renewables First says Pakistan must rebalance its LNG strategy with better demand forecasting, renegotiated contracts, and faster investment in local gas and renewable energy to ensure affordable and stable energy in the long run.
Author Profile
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Ayesha Saba is an economic journalist advocating for Pakistan's shift from unstable farming to high-value sectors.
Her sharp analysis of the central bank's report spotlights tourism and technology as vital engines for job creation and resilience, urging urgent policy pivots toward a **diverse and sustainable future.
