⚡ Pakistan’s LNG Dilemma!
ISLAMABAD, August 25, 2025:
Pakistan is preparing to seek deferral of long-term LNG shipments from Qatar, as weak domestic demand and mounting foreign exchange pressure collide with an oversized import schedule.
⚡ ECC Greenlights Renegotiation
The Economic Coordination Committee (ECC) recently authorized the Petroleum Division to approach Doha for revised terms, covering 177 cargoes due between 2025 and 2031. The contracts, signed in 2016, represent a $5.6 billion financial burden on Pakistan’s already fragile reserves, according to Daily Times reports.
📉 Price Disadvantage & Regional Comparison
Pakistan’s original deal priced LNG at 13.37% of Brent crude, higher than India’s renegotiated rate of 12.66%. The Competition Commission of Pakistan has previously flagged this pricing gap, arguing that it placed Pakistani buyers at a disadvantage compared to regional peers.
🌍 Oversupply Fears
With new LNG import terminals boosting capacity, officials worry that excessive cargo arrivals could flood local supply chains. In July, Reuters reported that Pakistan had already curtailed domestic gas production and considered reselling surplus volumes on the international market.
🤝 Strategic & Geopolitical Angle
Talks with Qatar are expected to focus on multi-year deferrals, not just short-term adjustments, Bloomberg noted. Qatar remains Pakistan’s primary LNG supplier, shipping through Port Qasim under agreements extended in 2021.
Any deferral arrangement could ripple through regional LNG markets, especially as Asian buyers increasingly question the risks of long-dated contracts amid volatile prices and uneven demand recovery.
📌 Regional Benchmark
India’s earlier success in securing cheaper LNG terms with Qatar is being closely watched as a model. Pakistan’s push for contract relief may reignite debate over how Gulf LNG suppliers balance risk and pricing for South Asian buyers.