Pakistan Bears Qatar Energy LNG Price Losses

Qatar Energy agreed to divert 24 LNG cargoes to the open market in 2026, with Pakistan bearing any price differential losses. Pakistan State Oil will finalize the arrangement before November 15, 2025, while similar terms apply to 21 Eni cargoes for 2026-2027.

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Pakistan State Oil informed the federal government that QatarEnergy agreed to divert 24 LNG cargoes to the open market in 2026 under a net proceeds differential mechanism. The country will absorb financial losses if Qatar sells below the agreed contract price, with costs passed to LNG consumers. The Economic Coordination Committee received a report outlining this arrangement following low offtake by power producers that created a demand destruction scenario and LNG surplus.

The Petroleum Division and Pakistan LNG Limited previously worked with Eni to sell 11 cargoes in 2025 on similar terms, while five Qatar cargoes were deferred. A Pakistani delegation visited Doha in late August 2025 to finalize terms with Qatar Energy, with Pakistan State Oil closing discussions before the November 15, 2025 deadline. The Oil and Gas Regulatory Authority will implement federal policy guidelines for this arrangement. Additionally, 21 Eni cargoes for 2026 and 2027 will follow the same mechanism as Pakistan addresses an estimated surplus of 177 LNG cargoes projected through December 2031.