Energas, a consortium of Lucky Group and Qatar Energy, has pulled out of its plan to build a liquefied natural gas (LNG) terminal at Port Qasim, blaming changes in Pakistan’s energy policy and unresolved fiscal issues.
The Port Qasim Authority (PQA) has now warned Energas that it will cancel the project’s final letter of intent (LOI) unless the company gives its unconditional acceptance by November 30, 2026. If that happens, Energas will also lose the $2 million concession fee it paid.
Energas chairman Muhammad Ali Tabba has written to Prime Minister Shehbaz Sharif asking for the $2 million to be refunded.
Why Energas Walked Away
In his letter, Tabba said the self-funded project was launched in good faith to meet Pakistan’s energy needs at the time, which have since changed.
He pointed to the government’s Integrated Energy Study of March 2025, which said no new LNG terminals were needed for the next five years. He also said the five-year tax holiday for new terminals was withdrawn in June 2021 under IMF conditions.
According to Energas, pipeline capacity, gas transportation agreements, and third-party access exemptions also remained unresolved, despite the government promising to clear these hurdles.
PQA Says Fee Is Not Refundable
The PQA rejected the refund request. It said the $2 million was a concession fee, not a refundable advance, and could be forfeited under the 2019 Project Guidelines.
It added that approvals, studies, and financing were the developer’s own responsibility.
Qatar Energy had joined the project as a stakeholder and had committed to supply extra LNG at around 10.2 percent of Brent to keep the terminal fully used.
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