In 2026, Pakistan will import 85 LNG cargoes from Qatar instead of the 120 previously planned
Qatar agreed to cancel excess cargoes of liquefied natural gas (LNG), prompting the federal government to reopen previously closed local gas wells from January 2026. Local gas from closed fields is expected to start flowing into the system from January.
Gas fields had previously been closed to handle excess LNG cargoes. Government sources said Qatar has now agreed to cancel 24 LNG shipments for 2026, while the federal cabinet previously approved the diversion of 45 LNG cargoes on December 12, citing a drop in domestic demand.
Oil ministry sources said excess cargoes had earlier forced the closure of local wells producing 200 million cubic feet per day (MMCFD). The LNG surplus results from reduced use of imported gas by the power sector, which would normally be injected into the pipeline system.
To avoid possible pipeline damage from unused LNG, local fields were kept offline. In 2026, Pakistan plans to import 85 LNG cargoes from Qatar, up from 120 previously planned.
According to ministry sources, a total of 35 cargoes will be canceled, including 24 by Pakistan LNG and 11 by the Italian company Eni, generating savings estimated at Rs20.1 billion.
Oil ministry officials said the cancellation of excess cargoes would help meet the financial obligations of Sui companies, which total 850 billion rupees.
The gas sector’s circular debt currently totals Rs 3.1 trillion, of which Rs 1.7 trillion is principal and Rs 1.4 trillion is interest. The authorities have prepared a six-year plan to manage this debt.
Read: Cabinet approves diversion of 45 LNG cargoes
The plan, which includes three options, will be submitted to the federal cabinet for approval. The proposed measures include an oil tax of Rs5 and debt restructuring and interest relief options for businesses.
Reuters reported in November that Pakistan had reached an agreement with Italy’s Eni to cancel 21 LNG cargoes under a long-term supply contract.
Talks with Qatar
Amid increasing renewable energy production and falling demand for industrial gas, Pakistan has taken steps to reduce its LNG purchases, leading to a surplus of imported gas.
Eni signed a long-term LNG supply agreement with Pakistan LNG Limited in 2017 to deliver one cargo per month until 2032, retaining the option to redirect shipments elsewhere.
Sources told Reuters in November that Pakistan was also negotiating with Qatar over gas supplies from the Gulf state, including the possibility of deferring some cargoes or reselling them under existing contractual arrangements.
Learn more: How flawed LNG deals fueled the collapse of Pakistan’s 2.6 trillion rupee gas sector
Too much gas
Pakistan’s long-term LNG agreements with Qatar and Eni cover around 120 cargoes per year, or an average of nine per month, from two Qatari contracts and one from Eni. LNG imports have declined this year as power producers cut gas consumption due to increased solar and hydroelectric power generation.
Declining gas consumption by power plants and self-generated industrial facilities has led to a surplus, leaving the system significantly surplus to requirements for the first time in years.
The surplus has forced Pakistan to sell gas at a discount, reduce domestic production and consider offshore storage or resale of excess cargoes, government presentations seen by Reuters show.
Kpler data shows that Eni’s most recent cargo arrived at the GasPort terminal on January 3. Sources told Reuters that Pakistan and Eni also agreed to suspend further cargo deliveries in 2025.
Eni delivered 12 LNG cargoes to Pakistan in 2024.
With additional input from Reuters
