Pakistan has asked Qatar to defer 177 LNG cargoes over the next five years due to lower domestic demand, officials from the Petroleum Division confirmed.
Pakistan has decided to ask Qatar to delay the delivery of 177 (LNG) liquefied natural gas shipments over the next five years. These cargoes were agreed under long-term contracts but the country’s current demand for gas is much lower than expected.
Officials say that industries are using less gas, households are conserving energy and some sectors have shifted to other fuels. This has left Pakistan with more LNG than it can absorb while the energy sector is already under heavy financial strain.
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Qatar, the country’s biggest LNG supplier, has in the past shown flexibility to its long-term buyers. However, experts believe Doha may seek compensation or changes to the contract, making the upcoming talks crucial.
If the request is accepted, Pakistan will get some relief from immediate payments. But analysts warn this will only be a temporary solution unless the government reforms gas pricing, improves recoveries and plans consumption more accurately.
