New gas council takes charge as LNG supply shock forces market controls

The government has established a National Coordination and Management Council (NCMC) to manage the growing gas supply crisis triggered by disruptions in imported LNG shipments, while imposing strict controls on consumption, pricing oversight, and domestic production.

Operating with support from the Special Investment Facilitation Council (SIFC), the new body has assumed a central command role to mitigate shortages following the suspension of Re-gasified Liquefied Natural Gas (RLNG) supplies from Qatar routed through the Strait of Hormuz.

The supply disruption stems from a production shutdown at a 77 million tonnes per annum (mtpa) LNG facility in Qatar in March 2026, after which force majeure was declared on shipments. As a result, several cargoes scheduled for March 7, 11, 12, 16, 20 and 21 failed to arrive, intensifying supply risks for Pakistan’s power and industrial sectors.

In an immediate conservation measure, the government has suspended all new RLNG connections nationwide. Officials said the restriction will remain in force until supply chains are restored and normal operations resume.

Separately, the NCMC has directed Sui Northern Gas Pipelines Limited (SNGPL) to overhaul its domestic demand planning by aligning consumption forecasts with hourly load shedding patterns, reductions in Unaccounted for Gas losses, and seasonal demand shifts.

The council has also placed domestic exploration and production (E&P) under enhanced scrutiny, ordering strict monitoring of supply commitments from major producers including Mari, Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), MOL, and United Energy Pakistan (UEP).

In addition, the Petroleum Division has been instructed to accelerate regulatory processes, with a monthly progress report on streamlining timelines at the Directorate of Petroleum Concessions due by May 8, 2026. Authorities have also mandated the immediate allocation of newly offered gas volumes from E&P companies to the two state-run utilities.

Meanwhile, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) have been tasked, in coordination with the Oil and Gas Regulatory Authority (OGRA) and the Task Force on Power, to determine the additional profit generated by maintaining existing gas tariffs while shifting supply from higher-cost imported RLNG to lower-cost domestic gas. The calculation will be submitted to the NCMC for review.

Officials noted that prior to the force majeure event, Pakistan had already negotiated the diversion or deferral of more than 20 to 29 LNG cargoes scheduled for 2026 due to weak demand and elevated import costs, a move that reduced supply flexibility when the latest disruption occurred.