Pakistan expects to spend around $1.29 billion on liquefied natural gas (LNG) imports from November 2026 to February 2027 as winter demand rises and disruptions to Qatari supplies push the country towards more expensive spot market purchases.
The government plans to import 22 LNG cargoes during the four-month period, including 12 under long-term contracts and 10 from the spot market. Spot purchases are estimated to cost $863 million, averaging $86.3 million per cargo, nearly twice the cost of LNG sourced from Qatar.
Long-term contracts are expected to account for $429.83 million of the total bill. This includes 11 cargoes from Qatar worth $351.41 million and one cargo from Eni valued at $78.42 million, scheduled for January.
January 2027 is expected to be the most expensive month, with eight cargoes projected to cost $437.32 million. The LNG import bill for December is estimated at $369 million, reflecting the higher cost of spot purchases.
The procurement plan was discussed at a meeting of the government’s energy task force this month. Officials assessed that additional supplies would be needed to meet winter demand between November and February, with public sector entities expected to cover roughly half of the requirement through existing long-term contracts.
Pakistan Plans More Spot LNG Purchases
Pakistan State Oil (PSO) has two long-term LNG supply agreements with QatarEnergy. The first runs for 15 years, from 2016 to 2031, while the second covers 10 years, from 2021 to 2031. Both were signed under government-to-government arrangements.
Under the agreements, PSO receives 6.75 million tonnes of LNG annually, equivalent to 108 cargoes. However, PSO and QatarEnergy previously agreed to divert 24 cargoes scheduled for 2026 to other destinations because of weak domestic demand.
The second agreement, signed during the Pakistan Tehreek-e-Insaf government, faced criticism because Pakistan did not need the additional supplies at the time, contributing to a surplus in the domestic market.
PSO Seeks Review of Qatar LNG Contract
PSO and QatarEnergy have recently issued notices to review their LNG contracts. PSO has also sought federal government approval to review its agreement with QatarEnergy.
Both contracts are due to expire in 2031.
The projected winter import bill will depend on actual supply availability, contracted quantities, long-term prices and prevailing spot market rates.
