By SKM
March 4, 2026
ISLAMABAD: With tensions escalating around the Strait of Hormuz and supply uncertainty following reported operational constraints at QatarEnergy facilities, the government has sharply reduced LNG regasification rates and activated a nationwide gas load management plan to conserve dwindling supplies.
The government has reduced regasification of two LNG cargoes — one docked at the Pakistan GasPort Consortium Limited (PGPL) terminal and the other at Engro Elengy Terminal Limited (EVTL) — to 100 mmcfd, down from normal higher levels of 500mmcfd, in a bid to stretch available gas supplies until March 25.
The move comes as part of an emergency gas load management plan aimed at conserving dwindling imported supplies amid regional uncertainty.
As an immediate step, the government has suspended the gas supply to the fertilizer sector. Officials said the decision was taken to prioritize essential consumption and maintain system pressure.
Meanwhile, Sui Northern Gas Pipelines Limited (SNGPL) has proposed cutting gas supply to the CNG sector as well. The proposal is currently under consideration, though no final decision has been announced.
Officials maintained that domestic consumers will remain protected under the load management plan, while sectoral adjustments will be made to balance supply and demand in the coming weeks.
Officials said the regasification rate of two LNG cargoes — each carrying LNG of around 3 billion cubic feet (bcf) — has been cut to 100 mmcfd from 500 mmcfd, allowing unloading operations at the Pakistan GasPort Consortium Limited (PGPL) and Engro Elengy Terminal Limited (EVTL) terminals to be stretched until March 25, 2026. The vessels arrived on March 1 and 2, respectively.
Pakistan currently holds about 4.9 bcf of LNG in its main transmission pipeline system. Meanwhile, 350 mmcfd of local gas, previously curtailed to maintain linepack pressure, has been restored to ease supply pressures.
Under the gas load management plan, the government has immediately suspended 78 mmcfd of imported LNG supply to the fertilizer sector, citing the absence of further LNG imports this month.
Sui Northern Gas Pipelines Limited (SNGPL) confirmed the development and indicated that a proposal to cut 45 mmcfd gas supply to the CNG sector is under consideration, though no final decision has been taken.
Officials maintained that the domestic sector will remain protected, ensuring uninterrupted supply to households.
Sources said the government had pre-arranged the two LNG cargoes before the Hormuz situation worsened but has now decided not to import additional LNG in March, even under its flexible framework agreement with SOCAR, which allows Pakistan to opt out of monthly cargo purchases.
Imported LNG prices have already surged by nearly 50 percent, with fears of further escalation if regional instability persists.
Circular Debt, Policy Push
Energy sector insiders stressed the urgent need to implement the amended Exploration and Production Policy, which allows 35 percent of gas from new discoveries to be sold to third parties through competitive bidding.
Pakistan’s gas circular debt has ballooned to around Rs3,200 billion, and officials believe enabling private-sector purchases could unlock up to $5 billion in fresh E&P investment.
Recent discoveries totaling 77 mmcfd could potentially be auctioned to industrial buyers to bridge supply gaps.
Despite the looming shortages, officials argued against suspending CNG supplies entirely, noting that gas sold to the sector at Rs3,900 per MMBtu generates substantial revenue for SNGPL — funds that help contain the mounting circular debt.
Separately, a high-powered 18-member committee chaired by Finance Minister Muhammad Aurangzeb reviewed national fuel stocks and declared petroleum supplies “comfortable” despite regional volatility.
The Committee to Monitor Petrol Prices — constituted by Prime Minister Shehbaz Sharif — assessed crude oil and refined product stocks, including petrol, high-speed diesel, aviation fuel and LPG.
The committee noted that while global energy markets remain fluid amid uncertainty in the Gulf region, domestic supply chains are functioning normally.
The body directed authorities to prevent hoarding and smuggling, enhance coordination with provinces, and finalize a national contingency plan as uncertainty surrounding the Strait of Hormuz continues to cloud global energy markets.
The committee conducted a detailed assessment of crude oil and refined petroleum stocks, including petrol, high-speed diesel, aviation fuels and LPG. Members were briefed on current stock positions, days of cover and daily consumption trends, and were informed that supply chains across the country remain fully functional.
The meeting reviewed developments in international energy markets, including benchmark crude price movements, freight and insurance premiums, shipping routes and conditions in key maritime corridors. The committee noted that the global energy environment remains fluid, particularly amid uncertainty surrounding the Strait of Hormuz — a critical artery for global oil trade.
Participants were also briefed on trends in LNG and LPG markets. While LNG imports under long-term agreements continue to anchor Pakistan’s energy mix, the committee was cautioned that disruptions in regional shipping lanes could impact global LNG logistics. Cross-border LPG inflows are being closely monitored to ensure uninterrupted domestic availability.
The committee discussed a range of contingency measures to reinforce supply security, including enhanced diplomatic and commercial engagement with friendly countries to secure additional crude and refined products if required.
Members were informed of efforts to diversify procurement channels through regional energy hubs, including possible routing through ports in the Red Sea and Gulf region to sustain refinery throughput and ensure resilience in supply lines.
Energy conservation measures also came under review as part of a broader demand-management strategy. The committee emphasized that while supplies remain stable, prudent consumption would strengthen national preparedness in case of prolonged international volatility.
The finance minister stressed that ensuring uninterrupted availability of petroleum products remains the government’s foremost priority. He reiterated that the committee is monitoring developments daily and stands ready to take swift, coordinated action to safeguard national energy security and maintain domestic market stability.
The body also directed authorities to prevent hoarding, diversion and smuggling of petroleum products, and to enhance coordination with provincial governments to protect domestic supplies.
It was decided that chief secretaries of all provinces will join the next meeting to deliberate on a final summary and proposed national action plan.
The meeting was attended by Petroleum Minister Ali Pervaiz Malik, National Food Security Minister Rana Tanveer Hussain, Power Minister Sardar Awais Ahmad Khan Leghari, Minister of State for Finance Bilal Azhar Kayani, along with senior officials from relevant ministries and regulatory bodies.
The committee will continue deliberations to finalize a comprehensive national strategy in coordination with all stakeholders. Ends
