ISLAMABAD: In a relief measure for Pakistan’s energy sector, Qatar has agreed to postpone five LNG shipments from 2025 to 2026, addressing Pakistan’s current oversupply situation. This deferral, secured under a flexible clause within Pakistan’s two government-to-government (G2G) agreements with Qatar, follows a request made by Prime Minister Shehbaz Sharif during his recent visit to Doha, confirmed a senior Ministry of Energy official.
Pakistan has been experiencing an LNG surplus, with gas consumption dropping sharply, impacting the national pipeline network. The reduced demand, due to slowed GDP growth and decreased industrial activity, has left Pakistan with 18 surplus LNG cargoes for 2025. However, the agreements with Qatar only allow rescheduling of five shipments, leaving the government to explore options for the remaining 13 cargoes.
Annually, Pakistan imports 108 LNG cargoes from Qatar under two G2G contracts, with nine vessels arriving each month — five priced at 13.37% of Brent and four at 10.2% of Brent. An additional cargo is supplied monthly by ENI.
For the upcoming winter season, Pakistan LNG Limited has coordinated with Qatar and ENI to ensure sufficient supply, securing 12 cargoes for December 2024 and 12 more for January 2025 by adjusting delivery schedules. In November, six cargoes from Qatar are arriving, with three deferred to December and January to align with peak winter demand.
Story by Khalid Mustafa
