Surplus Gas Cargoes Push Islamabad to Review Imports
Pakistan has decided to approach Qatar to renegotiate its long-term liquefied natural gas (LNG) deal after a slump in domestic demand left the country with dozens of surplus cargoes, officials confirmed.
The Economic Coordination Committee (ECC) this week authorised the Petroleum Division to begin talks with Doha on reducing import volumes. Sources said Petroleum Minister Ali Pervaiz Malik is expected to visit Qatar to explore options, though it remains unclear if Qatar would be willing to reopen terms.
The 15-year deal, due to expire in 2031, has created difficulties for Islamabad as its power sector consumes less gas than expected. According to government estimates, nearly 51 surplus cargoes worth up to $1.5 billion are expected from July 2025 to December 2026.
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Pakistan faces three options: ask Qatar to cut monthly cargoes from nine to six or seven; extend the agreement’s tenure while postponing extra deliveries beyond 2031; or invoke a contract clause allowing Qatar to sell surplus cargoes elsewhere while charging Pakistan for losses.
Officials warned that excess imports have forced Pakistan to reduce local gas production, hurting exploration companies and raising consumer prices. RLNG supplied to households has added more than Rs240 billion to costs, according to energy sector regulators.
Pakistan signed two major LNG contracts with Qatar in 2016 and 2021. While the 2021 agreement lowered import prices by about 31%, falling power demand has undermined the original assumptions.
