Pakistan Plans First Underground Gas Storage to Manage LNG Supply

Pakistan has begun work on its first underground gas storage facilities as it seeks to address repeated LNG cargo diversions, a buildup of surplus gas in transmission lines, and rising safety risks in the national gas network.

The government-owned Inter State Gas Systems has invited proposals from experienced consulting firms through the Public Procurement Regulatory Authority’s EPAD portal for a need assessment and pre-feasibility study on the Underground Gas Storage (UGS) project.

Officials say the first phase of the project targets storage capacity equivalent to 11–12 days of national gas consumption. Pakistan currently has no dedicated gas storage infrastructure and depends almost entirely on “linepack”, the natural pressure and volume of gas held in the transmission pipeline.

Energy officials warn that this practice is inefficient at best and potentially dangerous at high pressures. During periods of low demand, excess gas can push linepack pressure beyond 5 billion cubic feet (bcf), a level described by regulators as a serious safety concern.

Pakistan has faced LNG cargo diversions and cancellations as domestic demand falls and surplus shipments accumulate. In late 2025 and early 2026, Pakistan approved a plan allowing diversion of up to 35 LNG cargoes in 2026 by major suppliers, including Eni and QatarEnergy, as part of efforts to ease the excess gas build-up and reduce storage pressures.

Pakistan previously explored options such as offshore LNG storage, resale of surplus cargoes, and deferring contractual deliveries as interim measures.

Dedicated storage facilities help balance supply and demand over daily, seasonal, and emergency cycles, a common practice in many advanced gas markets. Without storage, reliance on linepack leaves systems vulnerable to fluctuation and raises safety risks when pressure spikes.