Pakistan to sell surplus LNG in global markets from next year: minister

• Malik targets Rs1,000bn gas loss through LNG exports.
• Lower power demand leaves Pakistan with excess LNG.
• LNG exports tied to cutting debt and fuel imports.

LAHORE: Petroleum Minister Ali Pervaiz Malik said on Sunday that Pakistan would begin selling excess liquefied natural gas (LNG) in international markets from January 1, The News reported.

He told a press conference that Pakistan had been importing LNG from Qatar and the Italian firm Eni, but reduced use in power generation in recent months had created a surplus.

As a result, he said, the government had been forced to divert costly imported gas to domestic consumers, driving up circular debt in the gas sector and inflicting losses of around Rs1,000 billion since 2018-19.

“From January 1, we will sell this excess fuel in international markets and reduce our burden while limiting the loss caused by it,” he added.

Malik said that in recent months, there was a strong public demand to eliminate the use of substandard gas cylinders, which has now been addressed.

He said 250,000 to 300,000 new gas connections are being provided, and efforts are underway to offer maximum relief to the public during winter.

The minister said the government was trying to overcome the circular debt, while a Turkish petroleum company was set to open its office in Islamabad, creating new jobs for Pakistanis.

He added that reliance on imported oil and gas was being reduced and that an Azerbaijani delegation will visit Pakistan soon for this purpose.

He announced that a new pipeline from Maachike to Thallian is being laid, while the global energy transition from oil to electricity is being closely observed.

Work on copper exploration in Pakistan is accelerating, with 3.5 billion dollars in investment expected soon.

He added that international institutions are preparing major investments in Balochistan.

The minister said the Reko Diq project’s inauguration ceremony will be held at the Prime Minister’s Office within two months, adding that Pakistan will soon be exporting 400,000 tons of copper. Several more Reko Diq-related projects are also underway.

He stressed that nations progress only when politics is separated from national interest.

While constructive criticism is welcome, he said, the focus should be on improving governance rather than dragging each other down. “The state is more important than any individual,” he added.