Pakistan requested Qatar to divert 24 of its contracted LNG cargoes to the international market in 2026, citing declining domestic demand and strained infrastructure.
Petroleum Division officials, finalising the annual delivery plan by October’s end, invoked the net proceeds differential (NPD) clause in Pakistan’s LNG contracts with Qatar, where Qatar retains profits, and Pakistan bears losses if spot prices fall below contract rates.
Pakistan imports nine LNG cargoes monthly from Qatar under rigid “Take-or-Pay” terms—five at 13.37% of Brent crude (15-year contract) and four at 10.2% (10-year). Demand for the four Punjab RLNG power plants has plummeted to 486 mmcfd from 800 mmcfd in the power sector and 100 mmcfd from 350 mmcfd in exports. High RLNG prices (Rs3,500/MMBtu plus Rs570 levy) and Economic Merit Order shifts favour cheaper sources.
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An annual surplus of 35 cargoes, including 11 from ENI, causes pipeline pressure to exceed 5.17 billion cubic feet, risking system failure. Shutting down gas fields (270–400 mmcfd) threatens well damage and impacts crude oil and LPG production, per Attock Refinery’s warning.
In 2024–25, Pakistan diverted Rs242 billion in RLNG to domestic sectors. ENI’s favourable NPD clause allows profit-sharing, with one cargo diverted monthly in 2025, continuing in 2026 (except January).
The oversupply crisis strains Pakistan’s energy sector, risking economic losses and infrastructure damage. Qatar’s cooperation could ease pressure, but long-term solutions are needed.
