Qatar defers five LNG cargoes to 2026 amid Pakistan’s reduced demand

Following Pakistan’s request to manage an LNG surplus, Qatar has agreed to defer the delivery of five LNG cargoes originally scheduled for 2025 to 2026. 

The News reported, citing a senior Ministry of Energy official, that Prime Minister Shehbaz Sharif raised the deferment issue during his recent visit to Qatar, highlighting Pakistan’s need to manage an anticipated excess of 18 LNG cargoes due to decreased gas consumption. 

This rescheduling was finalised as part of the 2025 annual delivery plan to address Pakistan’s reduced gas demand. Under two government-to-government (GtG) agreements, Pakistan can defer up to five cargoes, but the remaining 13 extra shipments lack a similar deferral option. 

Pakistan currently imports 108 LNG cargoes annually from Qatar, with nine cargoes arriving monthly (five under a Brent rate of 13.37% and four at 10.2%) and an additional cargo from ENI. This brings the monthly LNG imports to 10 shipments. 

While discussions continue on handling the surplus, Qatar’s agreements do not permit halting or reselling the remaining 13 cargoes in the open market, as any price loss incurred by Qatar would require reimbursement from Pakistan State Oil (PSO).

For the upcoming winter, authorities have secured 12 LNG shipments for peak demand in December 2024 and January 2025. 

December’s supply will include 10 cargoes from Qatar and two from ENI, while January will have 11 from Qatar and one from ENI, adjusted to meet increased seasonal needs.

In November, only six LNG cargoes have been scheduled from Qatar, down from the usual nine. The other three have been reallocated, with one shifted to December and two to January 2025.