PGPC Seeks LNG Purchase Agreement

Pakistan GasPort, which owns and operates the 750mmscfd LNG import terminal at Mazhar Point, Port Qasim, Karachi, is in discussions with suppliers to purchase the fuel as industries in Pakistan seek to find cheaper sources.

According to a report published in Bloomberg, GasPort seeks to buy one LNG cargo per month for up to five years, at a price below the government’s long-term contracts. PGPC Chairman Iqbal Z. Ahmed told the publication GasPort is also in bilateral talks to begin importing individual spot LNG shipments as soon as November 2023.

The strategy, noted the report, is to get cheaper gas into the domestic market via the private sector. Currently, it said, all LNG imported into Pakistan comes through state-owned ventures that face stringent policies and procedures. At the same time, the government cannot easily ink bilateral deals without a public tender.

The move comes as Pakistan LNG struggles to secure additional shipments after a surge in spot prices during 2022 that forced the country to curb purchases.