LAHORE – Petroleum Minister Ali Pervaiz Malik announced Sunday that Pakistan will start selling surplus liquefied natural gas (LNG) in international markets from January 1, 2026, to curb mounting circular debt and losses exceeding Rs1,000 billion since 2018-19.
Speaking at a press conference, Malik said reduced power sector demand had created an LNG glut, forcing diversion to domestic consumers and hurting local producers. “From January 1, we will monetize this excess in global markets, ease financial burden, and enable state-owned gas companies to operate at full capacity and generate profits,” he declared.
The move follows Pakistan’s recent cancellation of 21 LNG cargoes from Italy’s Eni and ongoing talks with Qatar to defer or resell additional volumes.
Malik also unveiled major foreign investment inflows: Turkish Petroleum is returning after 20 years for onshore and offshore exploration and opening an Islamabad office. Azerbaijan’s SOCAR will arrive next week to finalize exploration partnerships and invest millions in the Machike–Thalian oil pipeline with PSO and FWO; construction begins within six weeks.
For the Reko Diq copper-gold project, $3.5 billion in private debt has been secured, matched by Barrick Gold and local firms, totaling $6–7 billion in phase-one investment. The signing ceremony is expected within two months.