ISLAMABAD, Oct 4: The Competition Commission of Pakistan (CCP) has released a detailed research study titled “State of Competition in the LNG Sector in Pakistan”, examining the structural, regulatory, and behavioral barriers to competition in the country’s liquefied natural gas (LNG) market.
Commissioned by the Finance Division and conducted by CCP’s Research Department, this report assesses the impact of SOEs such as PSO, PLL, SSGCL, and SNGPL on market dynamics, access, and efficiency in the LNG value chain.
The CCP’s research identifies the following critical challenges affecting the LNG market:
• Monopolistic dominance of SOEs in imports, storage, and distribution;
• Stringent licensing and tariff regulations that favor incumbents and restrict private sector participation;
• Infrastructure access limitations and slow implementation of Third-Party Access (TPA) rules;
• Circular debt accumulation of PKR 2,866 billion (as of January 2024), largely due to delayed tariff adjustments and RLNG diversion.
In line with international best practices and guided by the World Bank’s Markets and Competition Policy Assessment Toolkit (MCPAT), the report outlines strategic recommendations for reform, including:
• Establishing a ‘One-Stop-Shop’ for LNG import clearance through a Central Coordination Committee (CCC);
• Fast-tracking the implementation of TPA rules for LNG terminals and pipelines;
• Unbundling the Sui companies’ transmission and distribution operations to level the playing field;
• Improving demand forecasting and reducing Unaccounted-for-Gas (UFG) losses through targeted three-year plans.
Speaking on the launch of the report, Chairman CCP, Dr. Kabir Ahmed Sidhu, noted,
“This research aims to catalyze policy discussions and support reforms that foster open access, enhance private sector participation, and ensure sustainable energy security. Competition is central to unlocking efficiency and innovation in Pakistan’s LNG market.”
The study further draws lessons from global jurisdictions, notably Japan, highlighting the importance of gradual liberalization, unbundling infrastructure ownership, and ensuring fair access.
The full report is available for download at www.cc.gov.pk. Stakeholders and the public are encouraged to share their feedback with CCP’s Research Department at research@cc.gov.pk .
