In light of the recent economic downturn, Pakistan plans to renegotiate its long-term LNG agreement with Qatar due to the high expenses involved. The country will seek better conditions next year, according to Petroleum Minister Musadik Malik, who recently briefed a parliamentary energy committee.
The country’s power consumption has dropped as a result of the economic downturn, which is particularly concerning because natural gas provides more than one-third of the country’s electricity. Because of this, the future of excess LNG capacity, most of which was obtained through previous agreements with separate suppliers, is uncertain.
In December of last year, Pakistan moved the delivery of LNG cargoes from 2025 to 2026 as part of an earlier agreement with Qatar. The decision, which was taken without any financial penalties, is part of a larger plan to align energy purchases with the needs of the country. At the same time, talks with other suppliers to delay additional shipments are continuing.
In light of the present LNG market conditions and surplus supply, Pakistan has adopted a new strategy that it hopes would help alleviate fiscal pressures while simultaneously meeting its operational needs more cost-effectively.
