Pakistan is preparing to ask Qatar to defer long-term liquefied natural gas (LNG) deliveries as weak domestic demand collides with a heavy import schedule, according to local press and Bloomberg reporting.
The Economic Coordination Committee (ECC) last week authorized the Petroleum Division to renegotiate contract terms, potentially pushing back obligations covering 177 cargoes between 2025 and 2031. The ECC decision reflects mounting pressure on Islamabad’s foreign exchange reserves and a $5.6 billion burden tied to the existing purchase agreements, the Daily Times reported.
Pakistan’s 2016 contracts with Qatar set pricing at 13.37% of Brent crude, compared with India’s renegotiated rate of 12.66%. The Competition Commission of Pakistan has previously highlighted the cost differential, underscoring concerns that the deal placed Pakistani buyers at a relative disadvantage. As new LNG import terminals expand capacity, officials fear a glut could overwhelm local distribution and undermine fragile fiscal balances.
Bloomberg noted that discussions with Doha may seek multi-year deferrals rather than short-term relief. The prospect of delaying contracted cargoes comes as Pakistan grapples with excess supply. Reuters reported in July that authorities were already exploring the resale of surplus volumes after curtailing domestic gas production.
The negotiations also carry geopolitical weight. Qatar has long been Pakistan’s anchor supplier, with shipments running through Port Qasim under contracts extended in 2021. Deferral talks could ripple through regional LNG markets, as buyers across Asia reassess their exposure to long-dated agreements amid price volatility and uneven demand recovery.
Islamabad’s strategy will be closely watched by other South Asian importers. India’s earlier success in securing lower-cost terms with Qatar remains a benchmark in the region, and Pakistan’s push for relief may reopen debate on the balance of risk in Gulf LNG contracts.
By Charles Kennedy for Oilprice.com
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