Liquefied Natural Gas (LNG)

As the government’s designated LNG buyer, PSO continues to fulfill its duty of energizing the nation.

The Need for LNG

In 2014, Pakistan was facing a severe shortage of natural gas. The supply and demand gap was identified at around 3000 MMCFD. Importing LNG was the only viable solution. PSO was nominated as the government’s designated LNG buyer who would sell it to SNGPL.


Gas companies are responsible for procuring their customers' regasification, transportation, sales, and distribution of Regasified LNG (R-LNG). PSO sells LNG to SNGPL under back-to-back arrangements by arrangements approved by the MoP & NR/ECC.

LNG Imports

Since 2015, PSO has imported 400+ LNG cargos (more than 27 million metric tonnes) through spot purchases, long-term government-to-government contracts, and term agreements through a tendering process.

OGRA Regulations

The Oil and Gas Regulatory Authority (OGRA) regulates the upstream and downstream natural gas sector, which is authorized to issue licenses for the design, construction, and operations of the LNG terminals and the pipeline infrastructure.

OGRA monthly computes and notifies the weighted average cost of R-LNG prices in consultation with LNG importers and Sui companies for distribution to customers.

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