Petroleum Minister Ali Pervaiz Malik announced on Sunday that Pakistan will begin selling excess liquefied natural gas (LNG) in international markets starting January 1, a move aimed at reducing financial strain on the country’s gas sector and curbing mounting circular debt.
Speaking at a press conference in Lahore, the minister said Pakistan had accumulated surplus LNG due to a decline in domestic consumption, particularly in the power sector, where reliance on imported gas for electricity generation had dropped in recent months. Pakistan currently imports LNG from Qatar and Italian energy firm Eni.
Malik explained that the reduced demand had forced the government to divert the imported fuel to domestic consumers, a step that significantly increased circular debt in the gas sector. He noted that the resulting financial burden had cost Pakistan nearly Rs1,000 billion between 2018–19 and the present.
“From January 1, we will sell this excess fuel in international markets and reduce our burden while limiting the loss caused by it,” the minister said. He added that the decision would allow state-owned enterprises operating in the LNG sector to function at full capacity and improve profitability.
The announcement follows earlier reports that Pakistan had reached an agreement to cancel 21 LNG cargoes under its long-term contract with Eni in an effort to limit surplus imports. Officials also confirmed ongoing discussions with Qatar on options such as deferring cargoes or reselling surplus supply under existing terms.
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Foreign investment and expansion in the energy sector
Malik also highlighted upcoming foreign investment in Pakistan’s petroleum sector. He said Turkey’s energy minister recently visited Islamabad, and after two decades, Turkish Petroleum—working alongside Pakistani firms—would participate in both onshore and offshore exploration. The company is set to open an office in Islamabad employing 10 to 15 Turkish nationals, with additional job opportunities for Pakistanis.
He further announced that a delegation from the State Oil Company of Azerbaijan Republic (SOCAR) will visit Pakistan in the coming week to discuss exploration partnerships. SOCAR is also preparing to establish an office in Pakistan and will invest millions of dollars in constructing an oil pipeline from Machike to Thalian in collaboration with Pakistan State Oil (PSO) and the Frontier Works Organisation (FWO). Construction is expected to begin within six weeks.
Malik said there was an excess of imported gas as the use of this fuel for power generation had reduced in the country during the past few months.https://t.co/DhVbUY2xTw
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Malik said fundraising worth $3.5 billion for the Reko Diq project had been finalised, with an additional $3.5 billion investment planned by local firms and Barrick Gold in the project’s first phase. He said the signing ceremony is anticipated within two months at the Prime Minister’s House.
