ISLAMABAD: Pakistani conglomerate Engro Corp. Ltd. said on Friday it had “no obligation” to renegotiate a contract with the government for imported liquefied natural gas (LNG), a day after the new petroleum minister said it would seek new terms.
A spokesman for Engro said the total contract, to process and supply up to 600 million cubic feet of LNG per day for 15 years, is currently worth about $228,000 per day or about $83 million per year.
Engro’s stance sets up a potential conflict with the new government of Prime Minister Imran Khan, who has promised to scrutinize for corruption all deals made by the previous administration of ousted premier Nawaz Sharif.
Engro said in a statement that 2013 bidding for its Karachi terminal, Pakistan’s first, was done in an “auditable and transparent” tender process. The terminal came into operation in 2015.
“The government does not have a contractual right to reopen/renegotiate its terms and we are accordingly under no obligation to renegotiate the same,” the firm said in a statement. It also said the government was miscalculating its net profits from the venture.
Petroleum Minister Ghulam Sarwar Khan said on Thursday that the government would seek to renegotiate two LNG terminal deals, saying the previous government had agreed to pay too much.
He cited a contractual clause allowing for renegotiation with mutual consent but hinted the government would take other action if Engro refused.
“If they don’t come to renegotiation, then the further remedies that exist, we will definitely avail them,” the minister said.
He did not name the company involved in the second LNG contract. It was unclear whether he was speaking of Pakistan’s other completed terminal or one of several new ones planned.
The rapid adoption of LNG infrastructure has made Pakistan one of the industry’s fastest-growing markets in Asia, sparking interest from the world’s major energy producers and traders.
It also helped ease electricity outages of up to 12 hours per day that had crippled industry and disrupted daily life for the population of 208 million people.
Prime Minister Khan, however, is scrutinizing the deals. While in opposition, the former cricket star spearheaded a campaign accusing Sharif of corruption that led to the Supreme Court removing him from office last year.
Sharif was convicted by an anti-corruption court and sentenced to 10 years in prison in July, just ahead of elections won by Khan.
The three-time premier denies wrongdoing.
Sharif’s former petroleum minister, Shahid Khaqan Abbasi, who became prime minister after Sharif was ousted, is also under investigation by the state anti-corruption body over an unnamed LNG deal. Abbasi has denied any wrongdoing.
Pakistan’s Engro says “no obligation” to renegotiate LNG contract
Pakistan’s Engro says “no obligation” to renegotiate LNG contract
- A spokesman for Engro said the total contract, to process and supply up to 600 million cubic feet of LNG per day for 15 years, is currently worth about $228,000 per day or about $83 million per year
- The rapid adoption of LNG infrastructure has made Pakistan one of the industry’s fastest-growing markets in Asia, sparking interest from the world’s major energy producers and traders
Pakistan PM seeks review of new solar rules, orders protection of existing contracts
- Shehbaz Sharif directs appeal to NEPRA to safeguard contracts of 466,000 rooftop solar users
- He asks the government to ensure the cost does not shift to 37.6 million grid-only consumers
ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday ordered a review of new rooftop solar regulations issued by the power regulator, directing authorities to protect existing consumer contracts while ensuring the policy does not shift financial burden onto non-solar electricity users.
The move follows recent changes by the National Electric Power Regulatory Authority (NEPRA) that altered compensation rules for surplus electricity generated by rooftop solar users, part of broader power sector reforms aimed at easing pressure on state-run utilities.
Pakistan has been restructuring its energy sector under an International Monetary Fund-backed reform program to contain mounting circular debt and rationalize subsidies. Rapid growth in rooftop solar installations has reduced grid demand but also strained distribution companies’ revenues, prompting regulatory adjustments.
“The Power Division should immediately file a review petition before NEPRA to ensure maximum protection of existing contracts of solar consumers,” the prime minister instructed, according to a statement issued by his office.
He further instructed authorities to formulate a comprehensive plan to ensure that the cost burden of 466,000 solar beneficiaries does not fall on more than 37.6 million consumers who rely solely on the national grid.
Solar power grew from 4 percent of the energy mix in 2021 to over 14 percent–25 percent in 2024-2025, official figures show.
Driven by skyrocketing grid tariffs, Pakistan became one of the world’s top new solar adopters, importing roughly 22 gigawatts (GW) of solar panels in 2024 alone.
Industry data shows tens of thousands of new solar connections have been added annually, significantly reducing demand from the grid during daylight hours.
However, NEPRA’s new compensation rules have been designed so that consumers continue to pay full tariffs for electricity drawn from the grid while receiving a lower, market-linked rate for excess power they export.
