Pakistan LNG Ltd (PLL) held an emergency board meeting on Sunday to review the gas demand and supply situation and will meet again on Monday to finalize the offer price from Azerbaijan, according to Petroleum Division sources cited by Express Tribune.

Public utility Sui Northern Gas Pipelines Limited (SNGPL) has requested the import of at least one LNG cargo for January due to anticipated supply shortages. The decision comes amid the government’s reduction in domestic gas production and deferment of five LNG cargoes from Qatar to 2026, citing a surplus.

Short-term contracts like the one with Azerbaijan are often costlier than Pakistan’s long-term agreements with Qatar, though the final price will be revealed after Monday’s meeting.

This development follows the government’s recent decision to postpone LNG deliveries from Qatar by one year. Petroleum Minister Dr. Musadik Malik explained that Pakistan is deferring five LNG cargoes from Qatar and negotiating to delay five more from other suppliers without financial penalties. He attributed the surplus to an 8-10% year-on-year decline in electricity consumption over the past three quarters, driven by higher tariffs and reduced winter demand for natural gas, with power utilities cutting back operations by up to 60%.

Dr. Malik also dismissed reports of a finalized crude oil deal with Russia, calling them “completely false.” He clarified that Pakistan has not yet reached any agreement with Russia on crude oil purchases and stated that ongoing discussions aim to ensure affordable fuel for consumers without finalizing any arrangement.

Meanwhile, Pakistan has signed Memoranda of Understanding (MoUs) worth $2.7 billion with Saudi investors, with seven converted into agreements. A Saudi firm has shown interest in a $1.7 billion investment in Pakistan Refinery Limited, with further participation from other companies during recent investment roadshows.

Regarding the Iran-Pakistan gas pipeline project, Dr. Malik noted that its progress hinges on a U.S. waiver, which could bring significant benefits to Pakistan. He also highlighted ongoing reforms in the Directorate General of Petroleum Concessions, including digitization and merit-based appointments, aimed at improving efficiency and ensuring energy security through a blended gas tariff next year.

By pakistantoday.com.pk