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Too much gas, too little use—so Pakistan is cashing out. From January 1, excess LNG will hit international markets as the government looks to cut losses, ease circular debt, and rebalance the energy mix.
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Pakistan will begin selling surplus liquefied natural gas (LNG) on the international market starting January 1, Petroleum Minister Ali Pervaiz Malik announced during a press conference in Lahore on Sunday.
The minister said excess LNG imports had built up as gas-based power generation declined in recent months. As a result, imported fuel was being redirected to domestic consumers, contributing to mounting circular debt in the gas sector and causing losses estimated at around Rs1,000 billion since 2018–19.
“From January 1, we will sell this excess fuel in international markets to reduce the burden and limit further losses,” Malik said, adding that the move would also help state-owned gas entities operate at full capacity and improve profitability.
He confirmed that Pakistan had already cancelled multiple LNG cargoes under a long-term deal with Italy’s Eni and was in discussions with Qatar on options including deferment or resale of supplies.
Outlining broader sector developments, Malik said Turkish Petroleum would resume onshore and offshore exploration in partnership with Pakistani firms and open an office in Islamabad. He also confirmed upcoming investment by Azerbaijan’s SOCAR, including a planned oil pipeline from Machike to Thalian.
The minister added that funding for the Reko Diq project had been secured, with the first phase expected to attract up to $7 billion in investment.
