Divestment of LNG plants

The government would soon be delisting two mega LNG-based power plants of about 1,230MW each — Balloki and Haveli Bahadur Shah — from the privatisation agenda for their expedited sale on a government-to-government (G2G) basis. The government has been in talks with friendly governments in the Middle East, including Qatar, for the sale of at least two out of four LNG-based power plants, the most efficient so far, on a G2G basis to raise more than $2 billion direly needed to support fast diminishing foreign exchange reserves. Finance Minister Ishaq Dar’s visit to Doha last week is slated to have taken place in this background. Qatar has been pursuing creating a comprehensive LNG chain in the country, from its own LNG cargoes to the setting up of LNG terminals and dedicated long-term LNG buyers. But this has been mishandled by deep-rooted vested interests that run through various governments, including the previous and incumbent. This is despite the fact Qatargas remains the only trusted long-term LNG supplier since 2016, which has gone beyond its contractual responsibilities to deliver supplies to Pakistan while all other long-term and spot LNG suppliers repeatedly defaulted on cargo deliveries. At the same time, Qatar also enjoys very cordial relations with Pakistan, both in the political and defence circles, that can address hurdles.