KARACHI: US energy giant ExxonMobil has pulled out of a deal with Pakistani consortium Energas for the construction of a liquefied natural gas (LNG) import terminal near Karachi, officials of both business entities confirmed while talking to Arab News on Wednesday.
“This is part of our ongoing review to find further efficiencies and strengthen the company for the future,” ExxonMobil spokesperson Alvin Foo said in an email from Singapore. “The decision does not impact our Downstream and Chemical business in Pakistan, and future investment opportunities in Pakistan will be evaluated,” he added.
In 2018, ExxonMobil had signed an agreement with Energas to support the development of Pakistan’s third LNG import terminal. According to the document, the construction work had to be carried out at Port Qasim at an estimated cost of $150 million, and the facility had to be built to accommodate 750 million cubic feet per day (mmcfd) or about 5.6 million tons LNG per year.
At present, Pakistan has two LNG terminals that handle imported gas for domestic consumption. The combined capacity of these terminals is 1.2 billion cubic feet per day.
The Pakistani consortium has a combined balance sheet of $5.7 billion and an annual turnover of $3.2 billion, along with investments in power generation projects in the country with a capacity of 2,000 megawatts.
While acknowledging the technical support provided by ExxonMobil, Energas officials said the American company’s exit would not have a major impact since it had no equity stakes in the project. They added that all regulatory approvals and licenses had already been obtained and the construction of the terminal was likely to start within the next two months.
In May 2018, ExxonMobil acquired 25 percent stakes in offshore drilling in Pakistan at Kekra-1 near the Pakistan-Iran border. Other consortium partners were Government Holdings Private Limited, Pakistan Petroleum, Italian exploration giant ENI and the Oil and Gas Development Corporation (OGDC) of Pakistan. While it was initially said that the site had bigger reserves than those in Kuwait, the project was abandoned last year when the government announced that nothing had been found.
Although the ExxonMobil spokesperson did not comment on the impact of Kekra-1 drilling failure, he said that his company was looking at measures to reduce expenses arising out of market conditions and price reductions.
“ExxonMobil is evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term as a result of market conditions and commodity price decreases,” Foo said.
US-based experts say ExxonMobil has slashed its budget after suffering financial losses amid the coronavirus pandemic.
“ExxonMobil has reduced its capital budget. They are in the shale gas business here and suffered substantial losses due to price decline,” Masood Abdali, an energy expert, told Arab News from Texas. “Also, their business was not going well globally.”
Abdali, who previously served as business development manager of Weatherford in Saudi Arabia and Bahrain, believes that Pakistan’s market is difficult since it is risky for foreign companies.
“Pakistan’s market is very difficult and the risk is very high. Therefore, the operating cost remains high for foreign companies,” he said.
ExxonMobil pulls out of deal to construct LNG terminal at Pakistan's Port Qasim
https://arab.news/rvvtz
ExxonMobil pulls out of deal to construct LNG terminal at Pakistan's Port Qasim
- The spokesperson of the US energy company says exit won’t impact its downstream and chemical business in the country
- ExxonMobil had signed an agreement with Energas in 2018 to support the development of Pakistan’s third LNG import terminal
‘Look ahead or look up?’: Pakistan’s police face new challenge as militants take to drone warfare
- Officials say militants are using weapons and equipment left behind after allied forces withdrew from Afghanistan
- Police in northwest Pakistan say electronic jammers have helped repel more than 300 drone attacks since mid-2025
BANNU, Pakistan: On a quiet morning last July, Constable Hazrat Ali had just finished his prayers at the Miryan police station in Pakistan’s volatile northwest when the shouting began.
His colleagues in Bannu district spotted a small speck in the sky. Before Ali could take cover, an explosion tore through the compound behind him. It was not a mortar or a suicide vest, but an improvised explosive dropped from a drone.
“Now should we look ahead or look up [to sky]?” said Ali, who was wounded again in a second drone strike during an operation against militants last month. He still carries shrapnel scars on his back, hand and foot, physical reminders of how the battlefield has shifted upward.
For police in the northwestern Khyber Pakhtunkhwa (KP) province, the fight against militancy has become a three-dimensional conflict. Pakistani officials say armed groups, including the Tehreek-e-Taliban Pakistan (TTP), are increasingly deploying commercial drones modified to drop explosives, alongside other weapons they say were acquired after the US military withdrawal from neighboring Afghanistan.
Security analysts say the trend mirrors a wider global pattern, where low-cost, commercially available drones are being repurposed by non-state actors from the Middle East to Eastern Europe, challenging traditional policing and counterinsurgency tactics.
The escalation comes as militant violence has surged across Pakistan. Islamabad-based Pakistan Institute for Conflict and Security Studies (PICSS) reported a 73 percent rise in combat-related deaths in 2025, with fatalities climbing to 3,387 from 1,950 a year earlier. Militants have increasingly shifted operations from northern tribal belts to southern KP districts such as Bannu, Lakki Marwat and Dera Ismail Khan.
“Bannu is an important town of southern KP, and we are feeling the heat,” said Sajjad Khan, the region’s police chief. “There has been an enormous increase in the number of incidents of terrorism… It is a mix of local militants and Afghan militants.”
In 2025 alone, Bannu police recorded 134 attacks on stations, checkpoints and personnel. At least 27 police officers were killed, while authorities say 53 militants died in the clashes. Many assaults involved coordinated, multi-pronged attacks using heavy weapons.
Drones have also added a new layer of danger. What began as reconnaissance tools have been weaponized with improvised devices that rely on gravity rather than guidance systems.
“Earlier, they used to drop [explosives] in bottles. After that, they started cutting pipes for this purpose,” said Jamshed Khan, head of the regional bomb disposal unit. “Now we have encountered a new type: a pistol hand grenade.”
When dropped from above, he explained, a metal pin ignites the charge on impact.
Deputy Superintendent of Police Raza Khan, who narrowly survived a drone strike during construction at a checkpoint, described devices packed with nails, bullets and metal fragments.
“They attach a shuttlecock-like piece on top. When they drop it from a height, its direction remains straight toward the ground,” he said.
TARGETING CIVILIANS
Officials say militants’ rapid adoption of drone technology has been fueled by access to equipment on informal markets, while police procurement remains slower.
“It is easy for militants to get such things,” Sajjad Khan said. “And for us, I mean, we have to go through certain process and procedures as per rules.”
That imbalance began to shift in mid-2025, when authorities deployed electronic anti-drone systems in the region. Before that, officers relied on snipers or improvised nets strung over police compounds.
“Initially, when we did not have that anti-drone system, their strikes were effective,” the police chief said, adding that more than 300 attempted drone attacks have since been repelled or electronically disrupted. “That was a decisive moment.”
Police say militants have also targeted civilians, killing nine people in drone attacks this year, often in communities accused of cooperating with authorities. Several police stations suffered structural damage.
Bannu’s location as a gateway between Pakistan and Afghanistan has made it a security flashpoint since colonial times. But officials say the aerial dimension of the conflict has placed unprecedented strain on local forces.
For constables like Hazrat Ali, new technology offers some protection, but resolve remains central.
“Nowadays, they have ammunition and all kinds of the most modern weapons. They also have large drones,” he said. “When we fight them, we fight with our courage and determination.”
