Energas Port Qasim LNG terminal plan has been dropped by the consortium behind it. Energas, a consortium of the Lucky Group and QatarEnergy, has given up a multi-million-dollar plan to build a liquefied natural gas terminal at Port Qasim after years of delays and unresolved policy disputes.
The decision emerged on Friday, October 23, 2026, and was reported by Dawn on Monday, October 26. Energas cited fundamental changes to Pakistan’s energy policy and requirements, along with longstanding unresolved policy and fiscal matters.
Energas Port Qasim LNG terminal: why the consortium walked away
Energas chairman Muhammad Ali Tabba wrote to Prime Minister Shehbaz Sharif to explain the decision. He gave two critical reasons: a fundamental change in national energy policy and requirements, resulting in a clear frustration of purpose; and persistent, longstanding unresolved policy and fiscal matters with the government, the Port Qasim Authority and other government bodies, which had continuously impeded the project’s viability.
Tabba said the government had committed to resolving those matters after discussions with the State of Qatar. Despite the passage of time, he said, they remain unresolved, and that has damaged investor interest.
The consortium had sought several things from the government. QatarEnergy had booked an LNG terminal and committed to supply additional LNG at around 10.2 percent of Brent crude prices, almost the same rate it contracted to Pakistan State Oil under a second-term contract. Qatar also sought pipeline capacity allocation, a level playing field for LNG marketing, and an exemption from third-party access rules that require certain terminal capacity to be kept for government entities.
The $2 million fee now in dispute
The Port Qasim Authority has warned Energas that it will terminate its final letter of intent unless an unconditional acceptance is received by November 30, 2026, with an updated project status. If the letter is terminated, the $2 million initial concession fee paid by Energas will be forfeited. Energas has asked the prime minister for a refund, arguing that it bears no contractual lapse.
The authority disagrees. In its letter to Energas, it said the $2 million was not an ordinary refundable advance. It was an initial or partial concession fee under the Project Guidelines 2019, which allow forfeiture if the developer fails to meet the required conditions within the prescribed time, unless the parties agree otherwise. Paragraph 27 of the final letter of intent also requires termination and forfeiture in the absence of unconditional acceptance within the deadline.
A history of missed chances
The project dates back to a provisional letter of intent issued in May 2020, when the LNG Policy 2011 gave terminal operators a five-year tax holiday from the commercial operations date. That exemption was withdrawn in June 2021 for new terminals, while existing beneficiaries kept it. Energas attributed the withdrawal to International Monetary Fund conditions.
Ahead of Prime Minister Shehbaz Sharif’s August 2022 visit to Qatar, Pakistan approved changes to LNG policy to remove restrictions on upcoming private sector terminals providing part of their capacity to the government.
What it means for Pakistan’s gas supply
Pakistan already operates two LNG terminals, both at Port Qasim. The dropped plan would have added a third, but its loss does not cut current gas supplies, since the terminal was never built. Energas also pointed to the government’s Integrated Energy Study, whose final report of March 28, 2025 said no new LNG terminals were required over the next five years. The wider question is what happens to gas imports next. Feature Pakistan reported that Pakistan’s sea LPG imports rose as land supplies stalled, a sign of how fragile fuel supply routes have become during the regional conflict. Gas buyers, power plants and industry will watch whether the government now offers clearer terms for private terminals, or whether it sticks to the energy study’s view that no new terminals are needed.
What happens next
Energas wants its $2 million back, while the authority wants acceptance by November 30 or it will cancel the letter and keep the fee.
What is Energas?
Energas is a consortium of the Lucky Group and QatarEnergy that planned to build an LNG import terminal at Port Qasim near Karachi.
Why did Energas drop the plan?
It cited a fundamental change in energy policy and longstanding unresolved policy and fiscal matters with the government and the Port Qasim Authority.
