Pakistan and Qatar have agreed to review their long-term LNG supply arrangements as Pakistan deals with surplus gas supplies and changing domestic demand.
Pakistan State Oil and QatarEnergy have issued notices seeking a review of LNG contract prices.
Pakistan currently has two LNG agreements with Qatar that run until 2031. One agreement covers supplies from 2016 to 2031, while the second began in 2021.
The contracts provide for annual LNG deliveries, but weaker demand, particularly from the power sector, has created surplus supplies in Pakistan.
The government has already allowed the diversion of 24 LNG cargoes during 2026 to other destinations.
Under the agreements, either side can initiate a price review at specified stages. Negotiations are now expected to determine whether the existing pricing arrangements should be adjusted.
The LNG contracts operate under take-or-pay arrangements, making the issue particularly important for Pakistan because unused supplies can create additional financial pressure.
The review could therefore have implications for Pakistan’s future LNG costs and gas supply management.
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