Petroleum Minister Ali Pervaiz Malik said on Sunday that Pakistan will begin exporting surplus liquefied natural gas (LNG) to international markets from January 1 in an effort to reduce mounting losses in the gas sector.
Speaking at a press conference in Lahore, Malik said Pakistan had been importing LNG from Qatar and Italian energy company Eni. However, due to a decline in the use of LNG for power generation over recent months, the country was left with excess imported gas.
He explained that this surplus was diverted to domestic consumers, a measure that significantly increased circular debt in the gas sector. According to the minister, the oversupply contributed to losses of around Rs1,000 billion from 2018-19 to date.
Malik said exporting the excess LNG would help ease the financial burden on the sector. “From January 1, we will sell this excess fuel in international markets and reduce our burden while limiting the loss caused by it,” he stated.
The minister added that the move would also enable state-owned enterprises in the energy sector to operate at full capacity, improving their financial performance.
Last month, reports indicated that Pakistan had reached an agreement to cancel 21 LNG cargoes under its long-term contract with Eni as part of its strategy to curb excess imports. In addition, officials said Pakistan was in discussions with Qatar regarding future LNG supplies, with possibilities including deferring cargoes or reselling them under existing contractual clauses.
Malik said the upcoming export plan would support the government’s broader efforts to stabilise the gas sector and reduce the financial strain caused by persistent oversupply.
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