KARACHI: Energas, a consortium involving Lucky Group and QatarEnergy, has withdrawn from its plan to build a liquefied natural gas (LNG) terminal at Port Qasim, citing changes in Pakistan’s energy policy and unresolved fiscal and regulatory issues.
The development puts the proposed project at risk as the Port Qasim Authority (PQA) has warned that it will cancel the project’s final letter of intent if the company fails to provide unconditional acceptance by November 30, 2026.
Energas Chairman Muhammad Ali Tabba has written to Prime Minister Shehbaz Sharif seeking a refund of the $2 million concession fee paid for the project.
However, the PQA has rejected the request, maintaining that the fee is non-refundable under the 2019 Project Guidelines and may be forfeited if the project does not proceed.
Tabba said the project was initially planned to meet Pakistan’s energy needs, but demand projections and government policies have since changed.
He cited a March 2025 Integrated Energy Study that indicated no new LNG terminals would be required for five years, as well as the withdrawal of a five-year tax holiday for new terminals in June 2021 under IMF conditions.
Energas also pointed to unresolved issues involving pipeline capacity, gas transportation agreements, and third-party access exemptions. QatarEnergy had previously joined the project and committed to supplying additional LNG at a rate linked to around 10.2% of Brent crude prices.
