CCP releases LNG Sector Competition Assessment Report

October 04, 2025 (MLN): The Competition Commission of Pakistan (CCP) has issued a detailed assessment report titled “Competition Assessment of the LNG Sector in Pakistan”, analyzing structural, regulatory, and competitive challenges confronting the country’s liquefied natural gas (LNG) market.

Prepared by the CCP’s Research Department on the directives of the Ministry of Finance, the report evaluates the role and market impact of state-owned entities, including Pakistan State Oil (PSO), Pakistan LNG Limited, Sui Southern Gas Company Limited (SSGC), and Sui Northern Gas Pipelines Limited (SNGPL).

It reviews the LNG value chain, highlighting how these organizations shape sectoral performance.

The report points to several challenges in the LNG sector. These include monopolies of state-owned entities in import, storage, and distribution; licensing and tariff regulations that restrict private participation; and limited access to infrastructure.

It also noted slow enforcement of TPA rules and delays in tariff adjustments and RLNG transfers, which have driven circular debt to PKR 2.866 trillion as of January 2024.

In line with World Bank’s recommendations on market and competition policy, the CCP has proposed a series of reforms. These include:

• Establishing a one-stop shop through a central coordination committee for LNG import clearances.

• Immediate implementation of TPA rules for LNG terminals and pipelines.

• Separation of transmission and distribution functions of SSGC and SNGPL to ensure a level playing field.

• Development of a three-year plan to improve demand forecasting and reduce unaccounted-for gas (UFG) losses.

Speaking at the launch of the report, CCP Chairman Dr. Kabir Ahmed Sidhu stated that the objective of this study is to assist policymakers in implementing reforms that promote market access, enhance private sector participation, and strengthen Pakistan’s energy security.

He emphasized that fostering fair competition is crucial for innovation and growth in the country’s LNG market.

The Commission noted that international best practices, including Japan’s experience with phased liberalisation and infrastructure ownership unbundling, were taken into consideration while drafting the recommendations to ensure fair access for all stakeholders.

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