Pakistan to Renegotiate LNG Deal with Qatar for Better Terms in 2025
ISLAMABAD – Pakistan will renegotiate its 10-year liquefied natural gas (LNG) agreement with Qatar next year to secure more favorable pricing. The existing deal, based on a 13.37% slope, is considered expensive compared to global benchmarks.
The development was disclosed by Federal Minister for Petroleum Musadik Malik during a session of the National Assembly’s Standing Committee on Energy.
Read More: OGRA lowers LNG prices
Flexible LNG Deal with Azerbaijan
The minister also highlighted Pakistan’s LNG agreement with Azerbaijan, which follows a flexible take-and-pay model. Under this arrangement, one LNG cargo per month is offered without any binding commitments.
Refinery Upgrades & Biofuel Policy
Musadik Malik emphasized the urgent need for refinery upgrades to meet Euro-V fuel standards. He also announced that a biofuel policy will be presented to the cabinet within a month.
Gas Distribution Concerns
During the briefing, the Petroleum Secretary revealed that:
- 80% of Sindh’s industry relies on local gas, while Punjab receives only 20%.
- Sindh’s gas is being supplied to Balochistan, despite the province suffering from over 50% gas losses.
Committee Chairman Syed Mustafa Mehmood questioned why gas is being redirected to areas with high theft and poor recovery rates.
Lawmakers recommended establishing a separate gas management company to tackle Balochistan’s gas theft and distribution issues.
