Pakistan Seeks Qatar LNG Cargo Diversion Amid Falling Domestic Demand
Pakistan has asked Qatar to divert 24 of its contracted LNG cargoes to the international market in 2026. The move comes amid declining local demand and a growing surplus of natural gas in the country.
Pakistan Requests LNG Cargo Diversion from Qatar
According to The News, the decision follows infrastructure challenges within Pakistan’s LNG network. Storage and distribution systems are struggling due to lower-than-expected consumption from the industrial and power sectors. As a result, officials in the Petroleum Division are now reviewing annual delivery plans with Qatar.
The discussions are expected to conclude by the end of October. However, the final proposal will depend on both countries’ agreement under the net proceed differential (NPD) clause of their long-term LNG contracts.
Clause Offers Limited Financial Benefit
Under the NPD clause, Qatar can resell excess LNG cargoes in the global market. Pakistan, however, gains little financial relief from this arrangement. Qatar keeps any profit from resales, while Pakistan must bear any losses if market prices fall below contract levels.
In contrast, Pakistan’s agreement with Italian energy company ENI provides more flexibility. For example, it allows for both profit and loss sharing with Pakistan LNG Limited (PLL). Therefore, the government has already diverted one ENI LNG cargo each month in 2025. It plans to continue this policy through 2026, excluding January.
Energy experts believe this step may help Pakistan ease storage pressure and balance supply with real demand. However, they warn that long-term planning and contract restructuring are crucial for sustainable energy management.
