- Official says Pakistan will get LNG cargoes in 2026 after rescheduling
- Official: “The authorities are trying to postpone the import of 13 additional shipments of liquefied natural gas.”
- Pakistan imports 108 LNG cargoes from Qatar under two GtG agreements.
ISLAMABAD: Following a decline in LNG consumption, Pakistan has officially asked Qatar to reschedule five LNG cargoes to be imported in calendar year 2025, and now the country will get those cargoes in 2026 under the flexible clause, a senior official said. The Department of Energy said News.
“However, the authorities are also trying to strengthen the plan to suspend the import of 13 more LNG cargoes scheduled to arrive in Pakistan in 2025, otherwise Qatar may stop exporting 13 cargoes to Pakistan,” the official said.
The official added: “LNG consumption has now started to decline by 150 million cubic feet (MMCF) in one month, which means that the 18 LNG shipments in 2025 will divert additional shipments mainly due to lower GDP growth in the country and lower industrial activities.”
Prime Minister Shehbaz Sharif revealed, during his upcoming visit to Qatar, that he may discuss the issue of rescheduling five shipments of liquefied natural gas.
The authorities also want Qatar not to send 13 LNG cargoes in 2025. However, the authorities of Sui Northern, Mari Gas, PSO, Sui Southern and PLL have begun exchanging ideas on how to address the 13 cargoes issue, taking into account the agreements.
Pakistan imports 108 LNG cargoes from Qatar under two GtG agreements. Under the terms, the country imports nine LNG vessels per month (five cargoes per month at less than 13.37% of Brent and four cargoes at less than 10.2% of Brent). One shipment is imported through a terms agreement with ENI. This is how the country imports 10 cargoes of LNG per month.
However, the official said that under the agreements, there is no clause under which 13 more shipments can be stopped by Qatar as a supplier or a supplier would allow Pakistan to sell 13 shipments in the open market.
“If Qatar sells the LNG cargo destined to reach Pakistan in the open market at less than the price agreed with Pakistan, PSO will pay the loss for each shipment. However, the relevant authorities expressed hope that Qatar would agree to transport five cargoes of gas.” LNG to 2026, arriving in 2025 under the flexible clause.
In response to a question, the official said that the authorities have completed their plan next winter, according to which 12 shipments of liquefied natural gas will be provided during the peak of the winter season in December 2024 and January 2025.
“We have arranged 10 cargoes from Qatar for December and two from Eni. In January 2025, Qatar will provide 11 cargoes of LNG and 1 from Eni,” the official said, adding: “We have adjusted shipments to meet the peak demand in the winter as it was able to Pakistan LNG Limited (PLL) has decided to move its single cargo of Eni to December 2024, which was scheduled to arrive in September 2024.”
The authorities were also able to manage only six shipments from Qatar for the current month of November 2024, compared to nine shipments. “So one shipment was moved from Qatar to December and two shipments to January 2025.”