LNG Deal Delayed! Pakistan and Qatar in Talks to Postpone 10 Shipments
Pakistan is negotiating with Qatar to postpone 10 LNG shipments due to decreased electricity demand and high energy costs. Talks on refinery projects and Russian oil imports are also underway.
Issue Overview
Pakistan is currently in talks with Qatar to delay the delivery of 10 LNG cargoes scheduled for next year. This decision comes in response to a decline in electricity consumption caused by sluggish economic activity and high energy costs.
LNG Cargo Cancellations
Petroleum Minister Musadik Malik confirmed that five LNG cargoes for 2025 have already been canceled, with negotiations ongoing to defer another five. The decline in electricity demand has sidelined the country’s LNG-based power plants, while the private sector has been hesitant to purchase the costly LNG.
Energy Surplus
As a result of these developments, Pakistan has seen a surplus in LNG, with no spot LNG cargoes being imported for nearly a year.
Saudi Engagement and Oil Imports
Malik also highlighted Pakistan’s recent engagement with Saudi Arabia, including the signing of 34 MoUs worth $2.7 billion, some of which focus on Pakistan Refinery Limited (PRL) upgrades. Additionally, discussions on a new $8-10 billion greenfield refinery are progressing, with feasibility studies expected by December 24.
Regarding oil imports from Russia, Malik noted that while talks continue, the caretaker government has paused negotiations for imports through the public sector, now shifting the responsibility to the private sector.
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