Petroleum minister says Pakistan to sell surplus LNG abroad from January 1

• Ali Pervaiz Malik says follows reduced domestic LNG consumption for power generation
• Says Reko Diq project secures $6-7 billion investment, signing ceremony soon

LAHORE: Petroleum Minister Ali Pervaiz Malik announced on Sunday that Pakistan will begin selling its excess liquefied natural gas (LNG) in international markets starting January 1, a move aimed at curbing financial losses and easing the pressure on the country’s gas sector.

Addressing a press conference in Lahore, Malik said the decision follows months of reduced domestic LNG consumption for power generation, which left the country with surplus imported gas from “our friend” Qatar and Italian energy firm Eni. This surplus had previously been diverted to domestic consumers, contributing to rising circular debt in the gas sector and causing a cumulative loss of around Rs1,000 billion from 2018-19 to date.

“From January 1, we will sell this excess fuel in international markets, reduce our burden, and limit the financial losses,” Malik said. He added that the move would enable state-owned enterprises to operate at full capacity and generate profit.

Last month, Pakistan reportedly canceled 21 LNG cargoes under its long-term contract with Eni as part of efforts to manage the gas glut and is in talks with Qatar to defer or resell some supplies under existing contracts.

The minister also highlighted ongoing foreign investments in Pakistan’s petroleum sector. He said Turkish Petroleum, in collaboration with Pakistani companies, would participate in onshore and offshore exploration for the first time in 20 years and open an Islamabad office employing 10-15 Turkish nationals along with Pakistani staff.

Similarly, a delegation from SOCAR (State Oil Company of Azerbaijan Republic) will visit Pakistan to collaborate with local firms on oil and gas exploration. SOCAR will invest in an oil pipeline from Machike to Thalian, constructed jointly with PSO and FWO, with work set to begin within a month to six weeks.

Malik further confirmed that private fundraising of $3.5 billion for the Reko Diq project has been finalized, with additional investment of over $3.5 billion from local companies and Barrick Gold. The $6-7 billion first phase is expected to transform Chaghi, with the project’s signing ceremony slated at the Prime Minister’s House within the next two months.