Qatar has asked Pakistan to submit a formal proposal either to defer LNG cargoes beyond 2030 or allow Doha to sell some of its term cargoes on the international market under the Net Proceeds Differential (NPD) clause, amid a widening gas supply-demand mismatch, The News reported.
A senior official familiar with the matter said, “Once Pakistan submits a formal written proposal, Qatar will respond with a counter-proposal. A final decision will be made if both parties reach mutual agreement.”
The request comes as Pakistan LNG Limited (PLL) has been diverting one term cargo per month, imported from Italian firm ENI, to the international spot market since February 2025 due to falling domestic demand. These diversions are expected to continue until December 2025.
Earlier, Pakistan had sought to defer 177 LNG cargoes worth $5.6 billion beyond 2030. However, the plan included ENI cargoes, which fall outside Qatar’s supply agreements. Under a revised plan, Islamabad intends to consume 80 LNG cargoes per year from Qatar out of 108 contracted, leaving 28 surplus cargoes annually—or 140 cargoes over the next five years.
At a current value of around Rs9 billion per cargo, the total worth of these surplus shipments stands at approximately $4.437 billion, based on an exchange rate of Rs284 per US dollar.
A Pakistani delegation led by Federal Minister for Petroleum and Natural Resources Ali Parvaiz Malik visited Doha on August 25 to explain the country’s declining gas demand and explore possible relief measures under existing agreements. Sources said Pakistan values its long-term LNG supply contracts with Qatar, but deferment of 140 cargoes into 2031–2032 is not covered under current contract terms.
Currently, Pakistan imports nine LNG cargoes from Qatar each month—five under a 15-year agreement priced at 13.37 per cent of Brent, and four under a 10-year agreement priced at 10.2 per cent of Brent. Both contracts follow a strict “Take-or-Pay” model to supply four RLNG-based power plants in Punjab. The power sector, however, is consuming less gas than contracted.
In contrast, Pakistan’s agreement with ENI allows profit or loss sharing if diverted cargoes are sold internationally. Under Qatar’s NPD clause, any profit from international sales remains with Qatar, while Pakistan bears losses if the sale price is below the contract rate.
Officials said the gas network is under strain due to excess line pack pressure in the main RLNG pipeline, which has crossed 5.170 billion cubic feet (bcf), above the 5 bcf danger mark. To manage pressure, local gas fields producing 270–400 million cubic feet per day (mmcfd) have been shut down. These shutdowns risk permanent well damage and reduced LPG and crude production, affecting refineries like Attock Refinery Limited.
Officials said the Petroleum Division and Pakistan State Oil (PSO) remain obligated to import nine LNG cargoes per month from Qatar, despite falling demand. The government must now submit a legally sound and commercially viable proposal to Doha, which is awaiting a formal request before offering concessions or alternatives.
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