Pakistan Seeks LNG Cargo Delay
Pakistan Seeks Delay in LNG Cargoes Amid Falling Domestic Gas Demand
Islamabad is preparing to approach Doha with a proposal to postpone delivery of 177 LNG cargoes over the next five years, according to sources in the Petroleum Division. The government delegation, led by Federal Minister for Petroleum Ali Pervaiz Malik, is expected to formally present the plan during an upcoming visit.
Officials noted that Pakistan may also suggest selling two LNG cargoes on the international market starting in January 2026. However, they stressed that the final decision on deferment lies with Qatar.
Domestic gas production has already been scaled back to reflect weaker demand. The power sector is currently consuming up to 300 million cubic feet per day (mmcfd) less than its allocated quota, while the export industry is also using below assigned levels, creating challenges in system line-packing.
Earlier in July, Reuters reported that Pakistan is exploring ways to sell surplus LNG amid a supply glut that could cost domestic producers around $378 million in annual losses, according to a government presentation. Currently, the country has at least three LNG cargoes in excess of immediate need, imported from Qatar, and is offering natural gas at steep discounts to local consumers, officials said.
Data from energy think-tank Ember show that gas-fired power generation, historically the largest consumer of LNG in Pakistan, has fallen for three consecutive years through 2024. In its place, cheaper solar power has seen significant growth, reducing reliance on gas.
This shift has forced domestic LNG producers to cut back production. Pakistan is also considering storing LNG cargoes in rented tankers for offshore storage and potential resale, according to a presentation by state-owned oil and gas company OGDCL to industry and government stakeholders.
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