Pakistan Delays $2 Billion LNG Imports, Threatening Winter Gas Supply

Pakistan has postponed a decision on importing roughly $2 billion of LNG, sparking fears of winter shortages for homes, industry and power plants.

NationPulse Desk

Oct 22, 2026 · 10:45 AM 3 min read

Key takeaways

Pakistan has delayed a decision on importing about $2 billion of LNG.

The Cabinet Committee on Energy has not approved a proposal for 22 cargoes.

Winter gas demand could rise from 850 to 1,600 million cubic feet per day.

A potential urea shortfall of 109,000 metric tonnes per month could result from plant closures.

Pakistan's foreign-exchange reserves are slightly over $21 billion after a $3 billion Eurobond issue.

Pakistan is holding off on a decision to import about $2 billion worth of liquefied natural gas, prompting worries about winter gas shortages and possible cuts to industry, power plants and fertilizer makers. The Petroleum Division has urged the government to start imports, warning that further delays could disrupt supplies and spark public unrest.

The Cabinet Committee on Energy (CCOE) has not yet approved a proposal for 22 LNG cargoes, even though the Petroleum Division sought approval last month.

The plan called for the first 12 cargoes to be imported between Oct 7 and Oct 10, but those dates have passed without a formal decision. Petroleum Minister Ali Pervaiz said the issue remains pending with the committee.

LNG Delays Raise Winter Supply Concerns

The government expected at least 11 cargoes from Qatar under a long-term deal, but Qatar has extended its force majeure until Nov amid regional uncertainty, making contracted deliveries less certain. Officials said the government had considered importing 15 cargoes instead of 22, but warned a smaller volume could worsen shortages during peak winter demand.

At an average estimated cost of $87 million per cargo, importing 22 shipments from Nov through Feb would cost nearly $2 billion. The government initially estimated $1.5 billion, assuming Qatar supplies at about $12 per million British thermal units. With deliveries uncertain, Pakistan may need to rely more on spot-market purchases, raising the financial burden.

The proposal included four cargoes from Azerbaijan via Pakistan LNG Limited, four arranged by Pakistan State Oil with other market participants, and three from a US-government nominated supplier. The remaining cargoes would help meet demand in the power and residential sectors. Several proposed deadlines for arranging these shipments have already passed.

Homes May Get Priority Over Industry

Winter gas demand is expected to nearly double, from 850 million cubic feet per day to 1,600 million cubic feet per day. Demand on the Sui Northern Gas Pipelines Limited network could rise from 550 million cubic feet per day to 1,100 million cubic feet per day, adding pressure on supplies in northern Pakistan.

Under the Petroleum Division's proposal, residential consumers would be prioritized, receiving gas from 5 a.m. to 10 p.m. with adequate pressure during cooking hours.

Industrial, power and fertilizer users would get gas according to availability, while compressed natural gas stations could see cuts, especially in Dec 2026 and Jan 2027. In severe shortages, cement plants and other industries might also face reduced supply to protect household demand.

The impact could reach fertilizer production. Officials said at least two fertilizer plants linked to the SNGPL network might have gas supply suspensions. The Ministry of National Food Security and Research warned that closures at Fauji Fertilizer Bin Qasim, Fatima Fertilizer and Agritech could create a urea shortfall of 109,000 metric tonnes per month.

The Petroleum Division compared the foreign-exchange impact of importing LNG with importing urea and providing subsidies, estimating that importing LNG and delivering it to consumers would have a larger financial effect for one month than importing urea. Pakistan's official foreign-exchange reserves stood at just over $21 billion after borrowing $3 billion through Eurobonds ahead of a major $3 billion debt repayment.

The final LNG import volume and procurement arrangements remain undecided, leaving the government to choose between the cost of additional imports and the risk of tighter gas supplies during the winter peak.