Pakistan Gets Temporary Relief on LNG Costs After Supply Disruptions

Pakistan has secured temporary financial relief on LNG terminal payments after discussions with private terminal operators following disruptions in gas supplies linked to regional conflict.

Officials said revised arrangements were agreed with Engro Elengy Terminal Pakistan Limited and Pakistan GasPort Consortium Limited to reduce some fixed charges payable under long-term LNG terminal agreements.

Under existing contracts, Pakistan is required to continue making payments for terminal capacity even when LNG cargo shipments do not arrive. The country reportedly pays hundreds of thousands of dollars daily in capacity and utilisation charges under these agreements.

Officials stated that support was provided for specific periods when LNG supplies were unavailable. One operator extended relief covering more than a month of disrupted supply, while another provided support for an even longer duration.

The arrangements were approved through coordination with state-owned entities involved in LNG agreements, including Pakistan LNG Limited and Sui Southern Gas Company.

Sources said authorities initially examined whether force majeure conditions could automatically suspend payments. However, contract reviews reportedly concluded that operators remained legally entitled to receive charges despite supply interruptions.

The government later focused on negotiations aimed at easing the financial burden rather than challenging contractual obligations.

Energy officials believe the temporary concession could help reduce pressure on national finances during periods of disrupted LNG imports.

In a separate statement, Pakistan GasPort highlighted its operational history, saying the terminal has handled hundreds of LNG cargoes since starting operations and continues to support the country’s energy needs.

The latest development reflects efforts to manage energy costs while maintaining long-term supply infrastructure critical for Pakistan’s gas requirements.

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