Lucky Group-QatarEnergy consortium seeks USD 2 million LNG terminal fee refund

Energas Terminal (Private) Limited, a consortium led by Lucky Group with QatarEnergy as a member, has asked Prime Minister Shehbaz Sharif to intervene and direct the Port Qasim Authority (PQA) to refund USD 2 million paid for a proposed liquefied natural gas (LNG) terminal.

In a letter dated September 7, seen by Nukta on October 27, the company said changes in Pakistan's energy requirements, withdrawn fiscal incentives and unresolved regulatory issues had undermined the project's commercial viability.

The consortium warned that nearly a decade of development efforts risked going to waste despite substantial investment of time and resources.

Why is Energas seeking a USD 2 million refund?

Energas says changing national energy requirements and longstanding policy and fiscal disputes have made its proposed LNG terminal commercially unviable. The consortium argues that it undertook the project when Pakistan needed additional gas import infrastructure, but unresolved government commitments and changes in energy policy have prevented it from progressing.

“Energas's inability to proceed with the project is attributable to two critical factors: firstly, a fundamental change in national energy policy and requirements, resulting in a clear frustration of purpose; and secondly, the persistent and longstanding unresolved policy and fiscal matters with the Government, PQA and other government bodies/authorities, which have continuously impeded the project's viability,” the company said in its letter.

Energas said it undertook the project in good faith, using its own resources without any financial commitment from the government.

A source familiar with the development told Nukta that the government had provided written assurances to Qatar regarding the project, but commitments under the LNG policy were subsequently withdrawn or remained unimplemented.

The source said reversing commitments after investors have spent years developing a project creates uncertainty and weakens confidence in Pakistan's investment environment.

What policy changes affected the LNG project?

One of Energas's main concerns is the withdrawal of a five-year tax holiday previously available to LNG terminal operators under the LNG Policy 2011.

The exemption, which began when a terminal started commercial operations, was withdrawn for new terminals in June 2021, while existing beneficiaries continued receiving the benefit, according to the company.

Energas said the withdrawal materially changed its financial projections and placed the proposed terminal at a competitive disadvantage.

The Federal Board of Revenue cited International Monetary Fund (IMF) structural conditions and Pakistan's economic and financial constraints in withdrawing the exemption, according to the company's letter.

Other unresolved matters include conflicting interpretations of customs duties and statutory regulatory orders (SROs), the absence of legislation implementing a cabinet-approved third-party access (TPA) exemption for private terminals, and uncertainty over pipeline capacity allocations by Sui Northern Gas Pipelines Limited (SNGPL).

Energas also cited the lack of an effective one-window mechanism for investors.

The consortium said resolving these matters was critical to the final investment decision by QatarEnergy and local investors.

How have Pakistan's changing energy needs affected the project?

Energas cited a government-commissioned Pakistan Integrated Energy Study, whose final report dated March 28, 2025, concluded that no additional LNG terminals would be required over the following five years.

The company said this assessment fundamentally changed the circumstances under which its project was conceived, weakening its economic rationale.

Uncertainty over pipeline capacity to transport regasified LNG from southern Pakistan to northern demand centers has also raised questions about the proposed terminal's operational feasibility, according to the letter.

What happens if Energas misses the November 30 deadline?

PQA directed Energas in a letter dated August 3, 2026, to provide unconditional acceptance of its final Letter of Intent (LoI) by November 30, 2026.

The correspondence identifies a May 20, 2020, LoI and states that failure to meet the deadline would result in its cancellation and forfeiture of the USD 2 million partial concession fee.

Energas said PQA had previously extended the acceptance deadline to November 30, 2026, through a letter dated September 25, 2025.

The consortium is seeking the fee's return, arguing that government policy changes and unresolved commitments have prevented the project from progressing.

The dispute leaves the proposed terminal's future uncertain, with Energas seeking government intervention before the November 30 deadline.