ISLAMABAD: Pakistan will renegotiate its liquefied natural gas (LNG) supply agreement with Qatar, as the current 10-year deal includes a provision allowing either party to terminate or review the treaty after a decade.
The move comes as Pakistan seeks to address rising energy costs and secure more favourable terms for its growing energy needs.
Federal Minister for Petroleum Musadik Malik revealed the development during a briefing to the National Assembly’s Standing Committee on Energy (Petroleum Division).
He highlighted that the existing agreement with Qatar, which carries a 13.37 per cent slope, is more expensive compared to other international deals. “The Qatar agreement is costly, and we will negotiate better terms next year,” Malik said.
In addition to the Qatar deal, Malik briefed the committee on Pakistan’s LNG agreement with Azerbaijan, which operates on a take-and-pay basis. This arrangement provides flexibility, allowing Pakistan to purchase cargoes as needed without being locked into rigid commitments. “Azerbaijan’s contract is more flexible and cost-effective,” Malik noted, adding that Azerbaijan offers one cargo per month, with the option to decline purchases if necessary.
Musadik Malik said Pakistan’s refineries need major upgrades to meet Euro-V standards, while a biofuel policy will be presented to the cabinet within a month.
During the standing committee meeting, chaired by Syed Mustafa Mehmood, Sindh’s gas shortage echoed, with provincial representatives decrying the diversion of its surplus gas to other provinces in violation of constitutional provisions. Lawmakers from Sindh demanded amendments to the Constitution if such practices continue.
Musadik Malik acknowledged that resource distribution has been a contentious issue since Pakistan’s inception. “The distribution of resources has always been this way, even before my tenure,” he said. Malik insisted gas allocation is constitutionally compliant but admitted Sindh is not receiving its fair share.
Sindh’s Syed Naveed Qamar argued that the Constitution prioritizes gas for producing provinces, yet Sindh faces shortages. The Petroleum Secretary revealed 80 per cent of Sindh’s industry relies on local gas compared to 20 per cent in Punjab, yet Sindh’s gas is supplied to Balochistan, where losses are high over 50 per cent.
Committee Chairman Mehmood questioned why gas is being diverted to areas with poor recoveries.
Officials from SSGC said that high court has ruled that consumers in the province cannot be billed more than a certain limit, a decision that has been challenged in court. “We are complying with the court’s orders,” Malik said, adding that the responsibility for Balochistan’s gas losses should also lie with the provincial high court.
Balochistan’s gas theft was also discussed, with committee member Moin Amir Pirzada calling for a separate gas management company for the province.
