ISLAMABAD – The federal government has decided to initiate formal negotiations with Qatar for future liquefied natural gas (LNG) supplies as the country grapples with a growing RLNG oversupply crisis.
The official sources said that the move comes in light of two key factors: the activation of the “price reopening clause” in two existing LNG term agreements valid until March 2026, and the recent diversion of LNG cargoes towards international markets due to changing global dynamics.
The officials in the Petroleum Division expressed concern over the worsening RLNG glut, which has been exacerbated by the power sector’s failure to offtake imported gas in accordance with existing agreements.
This non-compliance has not only violated contractual obligations but has also put additional strain on national energy management.
To address the issue and secure future supplies on favorable terms, a high-level Pakistani delegation led by Federal Minister for Petroleum and Natural Resources Ali Pervaiz Malik is scheduled to visit Qatar by the end of August.
The visit aims to explore options for long-term cooperation and possible renegotiation of supply terms to ensure energy security and economic viability.
