Pakistan asks Qatar to shift 5 LNG cargoes to 2026

ISLAMABAD: Following the reduction in the RLNG consumption, Pakistan has formally asked Qatar to reschedule five LNG cargoes that are to be imported in the calendar year 2025, and now the country would get those in 2026 under the flexible clause, a senior official of Ministry of Energy told The News.

“However, authorities are also trying to firm up the plan to shelve import of 13 more LNG cargoes that are to arrive in Pakistan in 2025, or Qatar may halt the export of 13 cargos to Pakistan.

“The RLNG consumption has now started tumbling by 150 million cubic feet (MMCF) in a month, which means that the 18 LNG cargoes in 2025 would turn the additional ones mainly because of the lower GDP growth in the country and reduced industrial activities,” added the official.

Prime Minister Shehbaz Sharif, he disclosed, during his forthcoming visit to Qatar, may take up the issue of rescheduling five LNG cargos. The authorities also want Qatar not to send 13 RLNG cargoes in 2025. However, authorities of Sui Northern, Mari gas company, PSO, Sui Southern and PLL have started brainstorming on how to tackle the issue of 13 cargoes, keeping in view the agreements.

Pakistan imports 108 LNG cargoes from Qatar under two GtG agreements. The country, under the terms, imports nine LNG vessels a month (five cargoes a month under 13.37 per cent of the Brent and 4 cargos under 10.2 per cent of the Brent). One cargo is imported through a term agreement with the ENI. This is how the country imports 10 LNG cargos a month in toto.

However, under the agreements, the official said, there is no clause under which 13 more cargos could be halted by Qatar as a supplier or supplier allows Pakistan to sell 13 cargos in the open market.

“If Qatar sells the LNG cargo destined to reach Pakistan in the open market below the price agreed with Pakistan, the loss would be paid by PSO on every cargo. The authorities concerned, however, hoped that Qatar would agree to shift five LNG cargoes to 2026 that are to arrive in 2025 under the flexible clause.”

To a question, the official said that in the coming winter season, the authorities have completed its plan under which 12 LNG cargoes would be available during the peak winter season each in December 2024 and January 2025.

“We have arranged 10 cargoes from Qatar for the month of December and two from ENI. And for January 2025, Qatar would provide 11 LNG cargoes and ENI 1. “We have readjusted the cargos to meet the peak winter demand as Pakistan LNG Limited (PLL) managed to shift its one cargo from ENI to December 2024, which was to arrive in September 2024.”

“Likewise, the authorities managed only six cargoes from Qatar for the current month of November, 2024 against nine cargoes. So one cargo from Qatar has been shifted to December and two to January 2025.”