Pakistan to seek Qatar’s nod to divert LNG cargoes amid supply glut

ISLAMABAD: Trapped by LNG glut, Pakistan has geared up to initiate talks with Qatar, seeking permission to divert some imported gas cargoes to the international market, as the additional number of LNG vessels has increased to 30 per year -- mainly due to a steep reduction in gas consumption caused by lower GDP growth and a massive increase in gas prices, a senior official of the Petroleum Division told The News.

“The government is already diverting one LNG cargo from ENI – an Italian company a month to the international market from February 2025 and the diversion will continue till December 2025. After that Pakistan LNG Limited and ENI will decide as to whether diversion should continue or not in 2026.”

Despite diversion of one LNG cargo from ENI per month, the government has failed to absorb the RLNG being imported from Qatar under two long-term agreements as the exports sector has reduced the imported gas by 250 mmcfd to just 100 mmcfd from 350 mmcfd as the price of gas for captive power plants (CPPs) has increased to Rs4,291 per MMBTU (Rs3,500 plus 5 per cent off-the-grid levy).

This has put the top mandarins of the Petroleum Division on a tightrope and they have decided to initiate talks with Qatar authorities during the period from October 15 to November 15, 2025 when Annual Delivery Plan (ADP) for import of LNG cargoes for 2026 will be finalised with authorities in Qatar.

“We will undertake talks with Qatar during the window of October 15 to November 15 and seek permission from Qatar to divert some of the cargoes to the international market to avert the LNG glut and line pack pressure in the main LNG pipeline. Under the provisions of two agreements with Qatar, the import of LNG cargoes can be deferred. And to this effect, Qatar has already deferred the import of five LNG cargoes to 2026 which were destined to reach in 2025.