Pakistan Approves LNG Cargo Diversion Plan to Save Forex

Pakistan has approved a major plan to divert LNG cargoes for the year 2026, which is expected to save around one billion dollars in foreign exchange. This decision comes after months of delays, and it aims to stabilize the country’s gas supply system by reducing surplus LNG. The plan is seen as an important step toward easing pressure on the energy sector, especially through the LNG cargo diversion plan approved by the government.

According to officials, Pakistan has finalized its long-awaited yearly delivery schedule with Qatar and the Italian company Eni. Under this arrangement, a total of 35 LNG cargoes will be shifted toward international markets. This move will help Pakistan manage the extra gas it no longer needs due to falling domestic demand.

A senior petroleum division official confirmed that Qatar will divert 24 out of the 29 cargoes requested by Pakistan, using the “non-performance delivery” clause of their long-term agreement. This clause also explains how profit or loss will be handled when the diverted cargoes are sold in the international market.

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Under the agreement, if Qatar sells a cargo at a higher price than Pakistan’s contract rate, all profit will go to Qatar. But if the cargo sells at a lower price, Pakistan State Oil (PSO) will bear the loss. Meanwhile, Eni will divert 11 cargoes under a separate negotiated arrangement, and in their case, both profit and loss will be shared by the company and Pakistan LNG Limited.

The government has clearly stated that it will not cover any losses from these diverted cargoes. Instead, any loss from lower international prices will be passed directly to RLNG consumers, such as power plants, export industries, CNG stations, and households using RLNG-based connections. Despite these adjustments, Pakistan may still have 13 extra cargoes in 2026, which adds further importance to the LNG cargo diversion plan approved earlier.