Pakistan will initiate talks with Qatar to renegotiate its liquefied natural gas (LNG) supply agreement, as the 10-year contract includes a clause allowing a review or termination. The decision aims to secure more favorable terms amid rising energy costs.Â
According to a news report, Federal Minister for Petroleum Musadik Malik informed the National Assembly’s Standing Committee on Energy (Petroleum Division) that the existing agreement, with a 13.37% slope, is expensive compared to other global deals. He stated that Pakistan will negotiate improved terms next year.
Malik also discussed Pakistan’s flexible LNG arrangement with Azerbaijan, which allows for monthly cargo purchases without strict commitments. He described the deal as cost-effective, offering Pakistan the option to decline cargoes when necessary.
Addressing domestic energy challenges, Malik noted that Pakistan’s refineries require major upgrades to meet Euro-V fuel standards. He added that a biofuel policy would be presented to the cabinet within a month.
Sindh lawmakers raised concerns over gas shortages in the province, arguing that its surplus gas is being diverted to other regions in violation of constitutional provisions. Syed Naveed Qamar pointed out that gas-producing provinces are supposed to have priority, yet Sindh faces supply shortfalls.
The Petroleum Secretary stated that while 80% of Sindh’s industry depends on local gas, a significant portion is redirected to Balochistan, where losses exceed 50%. Committee Chairman Syed Mustafa Mehmood questioned why gas was being sent to areas with high losses and low recoveries.
Officials from Sui Southern Gas Company (SSGC) said a court ruling prevents them from charging Balochistan consumers beyond a certain limit, and they are complying with judicial orders. Meanwhile, committee member Moin Amir Pirzada suggested establishing a separate gas management company for Balochistan to address theft and losses.
