Pakistan to renegotiate LNG Deal with Qatar amid rising domestic energy challenges.
Pakistan is set to begin negotiations with Qatar to revise its liquefied natural gas (LNG) supply agreement, as the 10-year contract includes a clause allowing a review or termination. The move aims to secure more favorable terms in light of rising energy costs.
According to reports, Federal Minister for Petroleum Musadik Malik informed the National Assembly’s Standing Committee on Energy (Petroleum Division) that the current agreement, with a 13.37% price slope, is costly compared to other global contracts. He stated that Pakistan plans to renegotiate for better terms next year.
Malik also spoke about Pakistan’s flexible LNG deal with Azerbaijan, which permits monthly cargo purchases without long-term commitments. He described the arrangement as cost-effective, allowing Pakistan to decline shipments when necessary. Addressing domestic energy concerns, he emphasized the need for refinery upgrades to meet Euro-V fuel standards and announced that a biofuel policy would be presented to the cabinet within a month.
Sindh lawmakers expressed concerns about gas shortages in the province, arguing that surplus gas from Sindh is being diverted to other regions, violating constitutional provisions. Syed Naveed Qamar highlighted that gas-producing provinces should have priority, yet Sindh faces supply deficits.
The Petroleum Secretary clarified that while 80% of Sindh’s industry relies on local gas, a substantial portion is redirected to Balochistan, where losses exceed 50%. Committee Chairman Syed Mustafa Mehmood questioned why gas was being sent to areas with high losses and low recovery rates.
Officials from Sui Southern Gas Company (SSGC) explained that a court ruling prevents them from charging Balochistan consumers beyond a certain limit, and they are adhering to judicial directives. Meanwhile, committee member Moin Amir Pirzada proposed setting up a separate gas management company for Balochistan to tackle issues of theft and distribution losses.
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