KARACHI (The Thursday Times) — Qatar has made a final offer to reprice its two long-term LNG supply deals with Pakistan at 11.96% of the Brent crude price, for far fewer cargoes a year, and Pakistan State Oil is seeking the government’s approval to sign by November 3, The Express Tribune reported, citing PSO sources.
Under the first contract, which runs from 2016 to 2031, LNG is priced at 13.37% of Brent, and Pakistan had asked QatarEnergy to cut that to 10.20%. The second, running from 2021 to 2031, is priced at 10.20%, and Pakistan wanted it kept there, while Qatar sought 11.98%. Qatar’s final offer settles both at 11.96%, which would cut the cost of the older deal but raise the newer one, the newspaper reported.
The offer covers 66 cargoes a year, against the 108 cargoes a year Pakistan is now committed to take. The sources said the prices were final and the decision now rests with Pakistan.
Take-or-pay
Both agreements were signed government to government and oblige PSO to take 6.75 million tonnes a year on a take-or-pay basis, with little room to divert surplus cargoes. With power-sector demand falling and gas piling up in the Sui system, the government authorised PSO in 2023 to seek a cut of two cargoes a month, and 24 cargoes were dropped from the 2026 delivery plan.
The price review was triggered in March, when the contracts reached their 10-year review points. If the two sides fail to agree within six months, either can terminate, though doing so would put Pakistan’s gas supply at risk.
QatarEnergy declared force majeure on its LNG exports in March after attacks on its facilities during the war with Iran, and the suspension now runs to November 5, leaving Pakistan scrambling to secure cargoes for winter.
