Islamabad, Nov 8: Qatar Delays Delivery of 5 LNG Cargoes to Pakistan Until 2026 Amid Supply Adjustments. A newly concluded deal between Qatar and Pakistan, in response to Pakistan’s request to manage an anticipated LNG excess, has delayed the delivery of five LNG cargo cargoes originally scheduled for 2025 to 2026. Pakistan’s Ministry of Energy confirmed this delay, pointing to a notable drop in gas use as a result of a slowdown in economic activity and decreased industrial demand.
As a result, the lower consumption has affected Pakistan’s LNG requirements, resulting in a current surplus of 18 cargoes for 2025. However, only five of these can be rearranged according to the flexible terms of the existing government-to-government (GtG) agreements with Qatar, leaving 13 cargoes still scheduled for delivery next year.
Pakistan imports 108 LNG cargoes every year from Qatar, with a monthly supply of nine cargoes based on two pricing structures linked to Brent oil benchmarks, in addition to one cargo from ENI. To address winter demand, the government has modified its LNG delivery schedule.
In December 2024, the country will receive 12 cargoes, with 10 sourced from Qatar and two from ENI. For November 2024, six cargoes will come from Qatar instead of the typical nine, with one cargo postponed to December and two to January.
Although Qatar has agreed to Pakistan’s request to delay the five cargoes, the GtG agreements do not permit additional rescheduling or resale of the other 13 surplus cargoes scheduled for 2025. Should Qatar sell these cargoes in the open market at a price lower than the agreed rate with Pakistan, Pakistan State Oil (PSO) would have to absorb any resulting losses.
This flexibility enables Pakistan to synchronize its LNG imports with actual demand, alleviating pressure on the national gas pipeline network. This deferment grants Pakistan crucial relief in managing its LNG supplies amidst changing economic conditions and seasonal demand variations.
