Pakistan saves over Rs1 trillion by diverting 24 LNG cargoes from Qatar in 2026: report

The government has claimed savings of over Rs1,000 billion by diverting 24 LNG cargoes from Qatar in 2026 due to low domestic demand, with no subsidy required for lifeline gas consumers. This move is part of the government’s broader reform agenda aimed at addressing the gas sector’s Rs2.6 trillion circular debt, The Express Tribune reported. 

Pakistan’s LNG imports have been curtailed due to increased reliance on domestic gas supplies, and reforms continue to attract investment in the energy sector.

Sui Northern Gas Pipelines Limited (SNGPL) and Pakistan State Oil (PSO) had earlier estimated that 177 cargoes would be surplus from July 2025 to December 2031. As a result, 24 LNG cargoes were set for diversion in 2026. 

The deal was approved by the Economic Coordination Committee (ECC) and is seen as a major step towards reducing financial strain in the gas sector.

The diverted cargoes, initially scheduled for Pakistan, will be sold by Qatar in the open market. Should Qatar sell the LNG below the agreed contract price, the differential loss will be passed on to local LNG consumers, with the Oil and Gas Regulatory Authority (OGRA) approving the recovery mechanism.

In addition to this deal, the government’s policy reforms have spurred investment from state-owned oil and gas companies in Turkey and Azerbaijan. These actions have helped settle outstanding invoices and halt the growth of circular debt within the sector. 

The LNG diversion will also aid local exploration companies, including Oil and Gas Development Company (OGDC), which recently received Rs82 billion due to the settlement of invoices. 

OGDC is also accelerating its shale gas exploration efforts, including a pilot program to establish the commercial viability of shale reserves in Pakistan. The program will involve horizontal fracking and collaboration with Turkish companies, marking a step forward in Pakistan’s energy sector expansion.