Qatar Energy Withdraws From Port Qasim LNG Plan Amid Policy Shifts

Qatar Energy, along with the Lucky Group, has withdrawn from the Port Qasim LNG terminal project due to 'policy changes' in Pakistan. This decision comes as the Port Qasim Authority (PQA) has issued a warning to Energas, stating that the final letter of intent (LOI) may be terminated if an 'unconditional acceptance' is not received by November 30, 2026.

According to informed sources, Qatar Energy had previously secured an LNG terminal and committed to supplying additional LNG at approximately 10.2pc of Brent, similar to its rate under a second-term contract with Pakistan State Oil. This move was intended to ensure full utilization of the terminal's capacity.

Qatar has also been seeking pipeline capacity for LNG transportation through the terminal near Karachi, along with a level playing field for LNG marketing and exemption from third-party access (TPA) requirements that mandate certain terminal capacity for government use.