Pakistan diverts third LNG cargo as gas demand declines

The government has diverted another liquefied natural gas (LNG) cargo originally scheduled to arrive next month, as Pakistan’s gas transmission system faces excessive pressure, fluctuating between 4.9 and 5 billion cubic feet (bcf). Authorities have taken this step to prevent the risk of a system overload, which could lead to serious disruptions, according to a news report. 

Pakistan had earlier requested Qatar to defer five additional LNG shipments under its long-term contract, but the request was not accommodated. However, Qatar had previously agreed to postpone five cargoes to 2026.

This latest diversion follows two earlier LNG cargoes from Italian energy company ENI that were redirected to the global market—one in February and another in March. The move comes amid a sharp decline in Pakistan’s gas consumption, which has dropped by 150-200 million cubic feet per day (mmcfd) each month.

Pakistan LNG Limited (PLL), a state-owned company, is in a long-term agreement with ENI to import one LNG cargo per month at a rate of 12.14% of Brent crude prices. The government is now negotiating with ENI to divert the remaining eight LNG cargoes scheduled for delivery from May to December 2025.

While PLL management declined to confirm details due to a non-disclosure agreement with ENI, it did not deny the development, choosing to remain silent on the matter.

The pressure to offload surplus LNG stems from the Power Division’s decision to reduce reliance on RLNG-based power generation. The sector’s demand for LNG remains low, even during peak summer months of June, July, and August, as RLNG plants are placed at the bottom of the Economic Merit Order due to their high production costs of Rs26-27 per unit.

In January, Sui Northern Gas Pipelines Limited (SNGPL) formally requested the federal government to divert 11 long-term LNG cargoes from ENI, citing surplus supplies. The National Power Control Cell (NPCC) confirmed that power sector demand would not increase in the summer months, reinforcing the need to redirect surplus LNG to international markets.