Govt Approves 45 LNG Cargoes Diversion

Govt approves 45 LNG Cargoes Diversion officially liquefied natural gas (LNG) cargoes following a consistent decline in domestic gas demand. The summary earlier endorse by the Economic Coordination Committee (ECC) was presented for final approval and has now been ratified.

Read more about: Upcoming Fuel prices in Pakistan

Why the LNG Diversion Was Needed

Govt Approves 45 LNG Cargoes Diversion During the cabinet meeting the Petroleum Division briefed officials that Pakistan State Oil (PSO) had accumulated surplus imported LNG due to persistently weak consumer demand. With storage pressures increasing, the government turned to international partners for a workable solution.

Qatar and Eni Agree to Take Surplus LNG

After negotiations Pakistan secured deals with two global energy suppliers:

LNG Cargoes Diverted to Qatar

Pakistan can sell up to 24 LNG cargoes in 2026
Sale will occur on a Net Proceeds Differential (NPD) basis
Both sides reached an optimal and mutually agreed solution

LNG Sales Agreement with Eni

11 cargoes will be sold in 2026
10 additional cargoes to be sold in 2027
Also on the NPD pricing mechanism

These measures will help Pakistan avoid losses linked to unused LNG and reduce financial strain on PSO.

Cabinet Decisions on Gas Supply to Urea Fertilizer Plants

Two major fertilizer plants connected to the Sui Northern Gas Pipelines Ltd (SNGPL) network were also discussed:

Fatima Fertilizer and Agritech
Earlier allowed to receive gas until 30 October 2025
ECC recommended extending supply until 31 December 2025

Cabinet has now ratified the extension

The government noted that long-term gas supply arrangements for the fertilizer industry are in the final stages and no further deliberations by the pricing committee are required for now.

Impact on Pakistan’s Energy and Fertilizer Sectors

This decision aims to:

Reduce financial losses from unsold LNG
Ensure stability in the fertilizer sector
Maintain consistent urea production
Avoid supply chain disruptions for farmers

The diversion strategy helps Pakistan better align gas imports with actual consumption trends.

Conclusion

Pakistan Govt Approves 45 LNG Cargoes Diversion and the approval to divert 45 surplus LNG cargoes marks a significant step in Pakistan’s efforts to balance its energy supply amid shrinking demand. With strategic agreements reached with Qatar and Eni and continued gas supply to key fertilizer plants the government aims to stabilize both the energy sector and agricultural inputs market. This move positions Pakistan for better energy management in 2026 and beyond.