Pakistan to Pay Double for LNG This Winter

Pakistan's LNG import bill is projected to reach $1.29 billion from November 2026 to February 2027 as winter demand and disruptions to Qatari supplies force the country to purchase more expensive gas from the spot market.

Key points

• When eight cargoes will push monthly costs to $437.32 million, the import bill is projected to peak in January 2027.
• While purchasing 10 from the spot market, the administration aims to import 22 LNG cargoes, including 12 from Qatar and one from Eni under long-term contracts.
• Under these contracts, PSO receives 6.75 million tonnes of LNG, equivalent to 108 cargoes, annually.
• The projected bill averages regarding $322.5 million throughout the next four months.
• Pakistan State Oil (PSO) and QatarEnergy have two LNG supply agreements.

In practice, the projected bill averages regarding $322.5 million throughout the next four months. PM Orders to Prepare Winter Gas Load Management Plan.

While purchasing 10 from the spot market, the administration aims to import 22 LNG cargoes, including 12 from Qatar and one from Eni under long-term contracts. The spot purchases are estimated to cost $863 million, with each cargo priced at $86.3 million, roughly twice the cost of LNG from Qatar.

Long-term contracts are projected to cover $429.83 million of the projected winter import bill, including 11 cargoes from Qatar worth $351.41 million and one cargo from Eni valued at $78.42 million in January.

When eight cargoes will push monthly costs to $437.32 million, the import bill is projected to peak in January 2027. December's LNG import bill is projected at $369 million, reflecting the higher cost of spot market purchases.

In practice, the procurement plan was discussed at a session of the government's energy task force this month. Authorities assessed that winter demand would require further LNG supplies between November and February, with public sector entities planning to secure roughly half of the requirement through existing long-term contracts.

Pakistan State Oil (PSO) and QatarEnergy have two LNG supply agreements. While the second runs for 10 years, from 2021 to 2031, the first covers 15 years, from 2016 to 2031. Both agreements were signed under government-to-government arrangements. Pakistan to Purchase 26 LNG Cargoes for Winter.

Under these contracts, PSO receives 6.75 million tonnes of LNG, equivalent to 108 cargoes, annually. Nevertheless, PSO and QatarEnergy earlier agreed to divert 24 cargoes scheduled for 2026 to other destinations as of low domestic demand.

In practice, the second contract, signed during the Pakistan Tehreek-e-Insaf administration, drew controversy as Pakistan did not require extra LNG at the time, contributing to a market surplus.

PSO and Qatar have lately issued notices to review their LNG contracts, with PSO seeking federal administration consent to review its agreement with QatarEnergy. Both contracts are due to expire in 2031. The projected import bill remains subject to actual supply availability, contract quantities, applicable long-term rates and prevailing spot market rates. Stay Connected with ProPakistani.

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For now, pakistan to Pay Double for LNG This Winter remains the part of the story worth watching, and further updates are likely as more details are confirmed.