ISLAMABAD (PEN) : In response to Pakistan’s request to manage an LNG surplus, Qatar has agreed to postpone the delivery of five LNG cargoes originally scheduled for 2025, deferring them to 2026. This arrangement was made following a discussion between Prime Minister Shehbaz Sharif and Qatari officials during his recent visit to Qatar, where he highlighted Pakistan’s reduced gas consumption and the resulting surplus of LNG.
As a senior official from Pakistan’s Ministry of Energy explained to The News, the deferment was part of a broader effort to adjust Pakistan’s LNG delivery schedule for 2025, given the country’s lower demand. Under the existing government-to-government agreements between Pakistan and Qatar, Pakistan has the option to defer up to five LNG cargoes. However, there is no similar flexibility for the remaining 13 cargoes in the supply plan, which could pose a challenge for managing the excess shipments.
Currently, Pakistan imports 108 LNG cargoes annually from Qatar, with a regular supply of nine cargoes each month—five under a Brent-indexed rate of 13.37% and four at 10.2%. Additionally, Pakistan receives an extra cargo each month from ENI, totaling 10 shipments per month. However, with demand falling short of expectations, there is a growing need to adjust how these deliveries are managed.
Discussions are ongoing about how to handle the surplus, but Qatar’s agreements with Pakistan do not allow for halting or reselling the extra shipments on the open market. If Qatar faces any financial loss due to these changes, Pakistan State Oil (PSO) would be responsible for reimbursing those losses.
For the upcoming winter season, authorities have secured 12 LNG shipments to meet peak demand, particularly in December 2024 and January 2025. December will see 10 cargoes from Qatar and two from ENI, while January will bring 11 cargoes from Qatar and one from ENI, ensuring that the seasonal demand is met.
In November, however, Qatar will only deliver six LNG cargoes to Pakistan, a reduction from the usual nine. The remaining three shipments have been rescheduled, with one moved to December and two to January 2025, further adjusting the flow of LNG to match the shifting demand.
This adjustment in LNG delivery reflects the evolving energy needs of Pakistan, with both Qatar and Pakistan working together to navigate the complexities of supply and demand, ensuring that Pakistan can manage its LNG resources efficiently while keeping costs in check.
