Lucky Group and Qatar Energy consortium abandons LNG terminal plan in Pakistan — Dawn
In Pakistan, the Energas consortium, which includes Lucky Group and Qatar Energy, has abandoned a multimillion-dollar plan to build a liquefied natural gas terminal at Port Qasim near Karachi. The company attributed the decision to changes in the country’s energy policy and needs, as well as unresolved policy and fiscal issues, Dawn reports.
The Port Qasim Authority warned Energas that it would terminate the final letter of intent if it did not receive unconditional acceptance of its terms and an updated project status by November 30, 2026. According to the authority, this could also result in the forfeiture of the initial concession payment of $2 million.
Demand to return the payment
Energas appealed to Pakistan’s prime minister with a request to return the $2 million it had paid. Company chairman Muhammad Ali Tabba said that the consortium had undertaken the self-financed project in line with the country’s energy needs at the time, which have since changed significantly.
According to Tabba, the inability to continue the project is linked to changes in state energy policy and the prolonged failure to resolve issues with the government, port authority and other state bodies. He also said that the government had committed to resolving these issues after negotiations with Qatar, but they remained unresolved and affected investor interest.
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Energas referred to the final report of Pakistan’s Integrated Energy Planning study dated March 28, 2025. According to the company, the report states that no new LNG terminals will be needed over the next five years.
Port authority’s position
The company also said that the five-year tax incentive for LNG terminal operators envisaged by the 2011 policy was withdrawn for new terminals in June 2021. At the same time, the PQA stressed that the $2 million is not an ordinary advance payment, but part of the concession payment that may be forfeited if the conditions are not met within the established timeframe.
The port authority noted that issues concerning gas pipeline capacity, gas transportation agreements, the connection site, third-party access and tax incentives fall under the developer’s obligations. Under the project rules, the developer must conduct the necessary studies, obtain regulatory approvals, secure financing, design, construction and meet other requirements.
