Energas, a joint venture of Lucky Group and Qatar Energy, has abandoned its proposal to construct a liquefied natural gas (LNG) terminal at Port Qasim, attributing the decision to alterations in Pakistan's energy policy and lingering fiscal concerns.
The Port Qasim Authority (PQA) has warned that it will revoke the project's final letter of intent (LOI) unless Energas provides unconditional acceptance by 30 November 2026, a move that would also cause the loss of the $2 million concession fee it previously paid.
Chairman Muhammad Ali Tabba of Energas has sent a letter to Prime Minister Shehbaz Sharif requesting a refund of the $2 million fee.
Why Energas Walked Away
Tabba explained in his correspondence that the self-funded initiative was launched in good faith to address Pakistan's energy needs at that time, needs that have since evolved.
He cited the government's Integrated Energy Study of March 2025, which concluded that no new LNG terminals would be required for the next five years, and noted that the five-year tax holiday for new terminals was removed in June 2021 under IMF conditions.
Energas also highlighted that issues such as pipeline capacity, gas transportation agreements, and exemptions for third-party access remained unsettled, despite promises from the government to resolve them.
PQA Says Fee Is Not Refundable
The PQA rejected the request for a refund, stating that the $2 million constituted a concession fee rather than a refundable advance and could be forfeited according to the 2019 Project Guidelines.
It further emphasized that the responsibilities for approvals, studies, and financing rested with the developer.
Qatar Energy, which had joined the venture as a stakeholder, had pledged to supply additional LNG at roughly 10.2 percent of Brent to keep the terminal operating at full capacity.
