Lucky Group and Qatar Energy pull out of Port Qasim LNG project over policy shifts

Energas, a partnership of Lucky Group and Qatar Energy, announced it is withdrawing from its planned LNG terminal at Port Qasim, describing the move as a result of a fundamental shift in Pakistan’s energy policy and persistent unresolved fiscal matters. The consortium highlighted that the Integrated Energy Study released in March 2025 concluded no new LNG terminals are needed for the next five years, undermining the project's economic rationale.

The Port Qasim Authority responded by setting a deadline of Nov 30, 2026, for an unconditional acceptance of the final letter of intent, warning that failure to meet this condition would cancel the LOI and forfeit the $2 million initial concession fee. Energas has appealed to Prime Minister Shehbaz Sharif for a refund of the fee, blaming policy changes and government inaction for the project's collapse. Qatar Energy had earlier arranged to supply LNG and sought preferential treatment, including pipeline capacity allocation and exemption from third-party access requirements, to ensure full utilization of the terminal.