ISLAMABAD: In a significant development, Russia has informed Pakistan that its LNG export terminals will be operational by 2026, paving the way for potential gas trade between the two nations. Both countries are actively exploring future LNG transactions, especially as Pakistan’s long-term LNG agreements with Qatar approach a critical price re-opening phase in 2026, according to a senior official from the Ministry of Energy.
Pakistan has existing LNG agreements with Qatar, including a 15-year deal signed in 2016 and a 10-year deal signed in 2021, both of which include price re-opening clauses. As these contracts approach their re-negotiation period, Russia’s offer of LNG becomes increasingly relevant. High-level discussions between Pakistani and Russian officials began following a meeting between Prime Minister Shehbaz Sharif and Russian President Vladimir Putin at the Shanghai Cooperation Organisation (SCO) summit in July 2024.
However, the parties are working through the complexities of payment mechanisms amidst U.S. sanctions on Russia’s oil and gas transactions. Pakistan hopes to leverage a potential LNG market glut to secure more favorable pricing from Qatar in 2026 while keeping Russia’s LNG offer as a strategic option.
Story by Khalid Mustafa
