Petroleum Minister Ali Pervez Malik has announced that Pakistan will start selling surplus Liquefied Natural Gas (LNG) in international markets from January 1.
During a press conference in Lahore yesterday, Ali Pervez Malik said that increased gas supply had been causing local producers to incur losses worth billions of rupees annually. He said Pakistan had been importing gas from its friendly country Qatar and the Italian company ENI, but due to reduced consumption of this fuel in electricity generation over the past few months, a surplus had accumulated.
The federal minister said that, out of necessity, this excess gas had to be supplied to domestic consumers, which increased the circular debt in the gas sector. As a result, Pakistan has suffered losses of nearly one trillion rupees since 2018–19. He said that from January 1, Pakistan will sell this surplus fuel in international markets to reduce the burden and limit further losses.
The Petroleum Minister added that this decision will enable Pakistan’s state-owned companies to operate at full capacity and generate profits.
It is noteworthy that last month it was reported that Pakistan had reached an agreement with ENI to cancel 21 LNG cargoes under their long-term contract to better manage excess imports, while discussions with Qatar are also underway. Options include deferring some cargoes or reselling them under the existing supply agreement.
Regarding investment, the Petroleum Minister said that Türkiye’s Energy Minister recently visited Pakistan, and after 20 years, Turkish Petroleum—along with Pakistani companies—will participate in onshore and offshore exploration activities. He added that Turkish Petroleum will open an office in Islamabad, employing 10 to 15 Turkish nationals and creating job opportunities for Pakistanis as well.
He further stated that a delegation from SOCAR (State Oil Company of the Azerbaijan Republic) will visit Pakistan next week to explore cooperation with local companies in oil and gas exploration. SOCAR will also open an office in Pakistan and, in collaboration with PSO and FWO, will invest millions of dollars in constructing a pipeline from Machike to Thalian, which is expected to begin within one to one and a half months.
Regarding the Reko Diq project, the Minister said that private investment worth 3.5 billion dollars has been finalized, and banks are completing documentation. Additionally, local companies and Canadian mining firm Barrick Gold will invest over 3.5 billion dollars. In the first phase, total investment will reach 6 to 7 billion dollars, which he said will bring a visible transformation to the landscape of Chagai. He added that the signing ceremony of the Reko Diq agreement is expected at the Prime Minister’s House within the next one or two months.
