- Musadik Malik calls for better LNG pricing next year.
- NA standing committee discusses Balochistan’s gas losses.
- Sindh lawmakers protest gas diversion, demand fair allocation.
ISLAMABAD: Pakistan is set to renegotiate its liquefied natural gas (LNG) supply agreement with Qatar, through a provision that permits either party to review or terminate the 10-year deal after a decade.
The decision comes amid rising energy costs, as the government aims to secure more favourable terms to meet the country’s growing energy demands.
Federal Minister for Petroleum Musadik Malik disclosed this development while briefing the National Assembly’s Standing Committee on Energy (Petroleum Division), highlighting the government’s strategy to optimise energy agreements and reduce financial burdens.
He highlighted that the existing agreement with Qatar, which carries a 13.37% 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.
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.
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% of Sindh’s industry relies on local gas compared to 20% in Punjab, yet Sindh’s gas is supplied to Balochistan, where losses are high over 50%.
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.
