By SKM
November 12, 2025
ISLAMABAD: In a new development, Pakistan has formally requested Qatar to divert 29 RLNG cargoes scheduled for 2026, up from an earlier request for 24 cargoes, amid a sustained decline in domestic gas demand.
“Qatari authorities are expected to respond to Pakistan’s request on November 15, 2025,” one official said to Exclusivewaves.com.pk. “There have already been positive indications from Doha on the earlier diversion proposal of 24 cargoes, but the revised request reflects further reduction in national gas consumption.”
If Qatar agrees to the diversion plan, Pakistan could save around $339.6 million in foreign exchange, based on the term cargo price of Rs 28.3 million per shipment. However, under the Net Proceeds Differential (NPD) clause in the long-term LNG supply agreement, profits from any resale above the contract price go to Qatar, while Pakistan must bear any losses — potentially up to $10 million per cargo, including operational costs.
Sources said Pakistan’s current RLNG surplus could have been managed more effectively earlier this year, as diversion of 37 LNG cargoes had been recommended during a series of meetings in October 2024 at the Pakistan State Oil (PSO) headquarters in Karachi. The sessions — convened on the directions of the Ministry of Energy (Petroleum Division) — included representatives from SNGPL, SSGCL, PSO, and Pakistan LNG Limited (PLL).
Officials noted that throughout 2025, spot LNG prices remained higher than term contract rates, making cargo diversions commercially favorable. However, PSO and other entities did not exercise available contractual options, leading to both operational and financial repercussions.
As a result, linepack pressure in the national gas transmission and distribution network reportedly rose above the danger mark of 5 billion cubic feet (BCF), forcing authorities to shut down local gas fields producing 310–500 million cubic feet per day (mmcfd) for prolonged periods.
The shutdowns not only strained foreign exchange reserves—as Pakistan continued importing expensive LNG—but also curtailed domestic crude oil and LPG production.
Industry officials said repeated closures of gas fields cause irreversible damage to gas wells due to loss of natural reservoir pressure. “In several cases, wells could not be revived even after investments exceeding $10 million,” one official noted.
Meanwhile, ENI has already finalized a negotiated agreement with Pakistan LNG Limited (PLL) to divert 32 LNG cargoes to the international market between 2025 and 2027. The management negotiated terms under which both profits and losses from diverted cargoes are shared, reflecting PLL’s commercial acumen and contractual flexibility.
According to Petroleum Division officials, the PLL-ENI deal is expected to help relieve excessive pressure in the national gas transmission system and generate $880–900 million in cumulative savings and profits over three years.
“So far in 2025, 11 ENI cargoes have been diverted, saving Pakistan $300 million in import costs and earning $45 million in profits,” an official said.
For 2026, ENI is projected to divert another 11 cargoes, saving $230 million and earning $45–50 million in profits. In 2027, 10 cargoes are expected to yield an additional $290–300 million, bringing the total benefit to $880-900 million. Ends
