ISLAMABAD: The government has redirected another long-term LNG cargo to the international market to prevent strain on the national gas transmission system, which is experiencing line pack pressure fluctuating between 4.9 and 5 BCF.
A senior Petroleum Division official confirmed that Pakistan had earlier requested Qatar to defer 10 LNG cargoes to 2026, of which only five were accommodated under the flexible clause of the 15-year contract. However, Qatar declined to defer the remaining five cargoes.
Key Developments:
Three LNG cargoes from ENI—an Italian trading company—have been diverted so far, following earlier redirections in February and March.
Line pack pressure has exceeded 5 BCF multiple times, posing a risk of system failure that could disrupt gas supply nationwide.
Pakistan LNG Limited (PLL), a 100% state-owned entity, has a long-term agreement with ENI to import one LNG cargo per month at 12.14% of Brent.
Gas consumption in Pakistan has declined by 150-200 MMCFD per month, prompting further talks with ENI to divert eight more LNG cargoes from May to December 2025.
RLNG Demand Decline in Power Sector:
The Power Division has refused to increase RLNG consumption for power generation, even during peak summer months. It cited a decline in electricity demand and the high cost of RLNG-based power, which stands at Rs 26-27 per unit, placing it at the bottom of the Economic Merit Order (ECO) list.
In a January 21, 2025 letter, SNGPL urged the federal government to divert 11 LNG cargoes scheduled for 2025. The National Power Control Cell (NPCC) confirmed that RLNG demand for June, July, and August would remain unchanged due to reduced electricity needs.
With surplus RLNG becoming a challenge, Pakistan continues discussions with ENI to manage supply levels and avoid unnecessary stockpiling.
Story by Khalid Iqbal
