Pakistan is preparing to hold important discussions with Qatar to review liquefied natural gas (LNG) supply terms before the price opening clause activates in March 2026. A delegation led by Petroleum Minister Ali Pervaiz Malik will visit Qatar later this month to finalize the Annual Delivery Plan for 2026. These talks aim to avoid further disruptions in LNG supply caused by deferrals and underuse by the power sector.
Currently, Pakistan imports nine LNG cargoes each month from Qatar—five at 13.37% and four at 10.02% of Brent crude prices. These shipments were meant to meet the needs of power plants in Punjab. However, the electricity sector’s failure to fully use the gas has caused an oversupply, forcing Pakistan to sell excess LNG in the international market.
Adding to the problem, Pakistan’s agreements with Qatar and ENI differ in financial outcomes. Under the ENI contract, profits and losses from international LNG sales are shared. But under the Qatar deal, profits from diverted cargoes go to Qatar, while Pakistan bears the full brunt of any losses. This imbalance has raised concerns about long-term sustainability.
The LNG glut has created serious challenges for the domestic gas system. By August 3, 2025, pressure in the RLNG pipeline had surged to 5.170 bcf, raising fears of a possible rupture. To control this, authorities were forced to shut down gas wells producing up to 400 mmcfd, disrupting overall supply and risking shortages in other sectors.
During the upcoming talks, Pakistan plans to use the price opening clause to renegotiate cargo prices and explore the possibility of reducing import volumes. These changes will likely take effect before new agreements are signed in 2027. Officials hope this move will prevent further waste, reduce losses, and bring balance to the country’s struggling energy system.