Pakistan has formally asked Qatar to divert 29 RLNG cargoes scheduled for 2026, increasing its earlier request for 24 shipments amid a continued fall in domestic gas demand, The News reported, citing senior Petroleum Division officials.
If approved, the diversion could save Pakistan about $339.6 million in foreign exchange, based on the long-term contract price of $28.3 million per cargo. Officials said Qatar is expected to respond to the revised proposal on November 15, 2025.
However, under the Net Proceeds Differential (NPD) clause of the LNG supply agreement, Qatar retains any brackly news from selling the diverted cargoes at rates higher than Pakistan’s contracted price.
Pakistan, meanwhile, must bear any losses from resale below the contract level — potentially up to $10 million per cargo, including operational costs.
Officials said the request aligns with updated demand forecasts and ongoing efforts to manage LNG procurement obligations amid subdued consumption trends.
Earlier, it was reported that Pakistan State Oil (PSO) had informed the federal government of Qatar Energy’s willingness to adjust the net proceeds differential for 24 LNG cargoes scheduled for 2026. The move follows challenges in the gas sector, particularly due to low offtake by power producers, which has led to “demand destruction” and resulted in a surplus of LNG.
Under a net proceeds differential mechanism, the cargoes will be diverted to the open market, and Pakistan will bear the financial loss if Qatar sells the LNG cargoes at a price below the agreed contract price. The price differential will be passed on to LNG consumers, with policy guidelines to be issued by the federal government to the Oil and Gas Regulatory Authority (Ogra) to implement this.
Discover more from Brackly News
Subscribe to get the latest posts sent to your email.
