Pakistan, Qatar agree to review LNG deal

A multimillion-dollar LNG supply contract between Pakistan and Qatar is now under review, the Express Tribune reported, as the country faces a gas glut. Sources cited by the paper said Pakistan State Oil (PSO) has asked the federal government for consent to revisit its contract with QatarEnergy, and review notices have been served. Both agreements expire in 2031 and, under them, PSO receives 6.75 million tonnes of LNG, equal to 108 cargoes, each year.

An earlier deal already allows 24 cargoes to be diverted to other destinations during the current calendar year. Both contracts follow a take-or-pay model with little room for diversion, so losses on surplus cargoes sold abroad fall on PSO while profits go to QatarEnergy. In 2023 the government authorised PSO to negotiate a cut of two cargoes a month, as demand from the power sector declined.

QatarEnergy issued a price review notice dated March 7, 2026 under SPA-II, and PSO issued one dated March 19, 2026 under SPA-I. If the parties fail to agree within six months of a notice, either side may terminate, though the report warns termination carries supply continuity risk. The report sets out three options: renegotiate the price, accept the existing price, or terminate.