Islamabad, Feb 7: Pakistan is set to renegotiate its 10-year liquefied natural gas (LNG) agreement with Qatar in 2026, aiming for more favorable terms. The current agreement, which includes a 13.37 percent slope, has been criticized for being excessively expensive when compared to global benchmarks. This was revealed by Federal Minister for Petroleum Musadik Malik during a recent session of the National Assembly’s Standing Committee on Energy.
Malik also highlighted that Pakistan’s LNG deal with Azerbaijan operates under a more flexible take-and-pay model, offering one cargo per month with no binding commitments, a contrast to the rigid terms of the Qatar agreement.
In addition to discussing LNG agreements, Malik stressed the need for upgrades to Pakistan’s refineries to meet Euro-V standards. He further announced that a biofuel policy would be presented to the cabinet within the next month as part of efforts to modernize the energy sector.
Meanwhile, the Petroleum Secretary informed the committee that 80 percent of Sindh’s industry depends on local gas, while Punjab only uses 20 percent. However, gas from Sindh is being diverted to Balochistan, where recovery losses exceed 50 percent. Committee Chairman Syed Mustafa Mehmood questioned the rationale behind redirecting gas to regions with such high losses.
Lawmakers voiced concerns about the management of gas distribution, particularly in Balochistan, and called for the establishment of a separate gas management company to address issues of theft and distribution inefficiencies in the region.
