Pakistan defers LNG contract with Qatar for a year, petroleum minister says
- Development comes amid decline in country's power usage
ISLAMABAD: Pakistan has deferred its liquefied natural gas (LNG) contract with Qatar for a year, Petroleum Minister Musadik Malik said on Wednesday, adding that the country will now get LNG cargoes from Qatar in 2026 instead of 2025.
Annual power use in Pakistan, which gets over a third of its electricity from natural gas, has declined 8-10% year-on-year over the past three quarters, the country’s power minister told Reuters in November, primarily due to higher tariffs curbing household consumption.
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The South Asian nation has deferred five LNG cargoes from Qatar and is also negotiating to defer five cargoes with other markets, he said, without disclosing the names of the countries.
The government, in November, announced a slash in electricity tariffs during winter in a bid to boost consumption and cut the use of natural gas for heating.
Many power utilities in Pakistan have had to curtail or even completely cease operations in winter months due to demand dropping by up to 60% from peak summer levels.
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In an interview with Reuters in June, Malik said that Pakistan is unlikely to buy LNG cargoes on the spot market until at least the beginning of winter in November due to oversupply and high prices.
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