ISLAMABAD: The federal cabinet has endorsed a plan to divert 45 liquefied natural gas (LNG) cargoes after a persistent decline in domestic gas consumption left Pakistan with surplus imported stock.
The Economic Coordination Committee (ECC) had earlier approved the diversion, and its decision was formally presented to the cabinet, which ratified it in a recent meeting.
According to sources, summaries titled “Update on Negotiation with State of Qatar for Mitigation of Surplus LNG” and “Operation of Two SNGPL-Based Urea Manufacturing Plants (Fatima Fertiliser and Agritech)” were placed before the cabinet for endorsement.
The Petroleum Division informed the meeting that Pakistan State Oil (PSO) had accumulated surplus LNG due to continued weak gas demand. It said negotiations with Qatar resulted in an optimal solution, allowing the sale of up to 24 LNG cargoes on a net proceeds differential (NPD) basis in 2026. Additionally, agreements were reached with energy firm ENI for the sale of 11 cargoes in 2026 and 10 cargoes in 2027, also on an NPD basis.
Following deliberations, the cabinet approved the ECC’s decision.
On the supply of gas to two Sui Northern Gas Pipelines Limited (SNGPL)-based urea plants—Fatima Fertiliser and Agritech—the cabinet noted that long-term gas supply arrangements for the fertiliser sector were being finalised. It concluded that further discussions by the cabinet committee on fertiliser gas pricing were unnecessary.
Earlier, on August 22, 2025, the cabinet had allowed gas supply to the two plants under existing arrangements until October 30, 2025. The ECC later recommended extending supply until December 31, 2025 to maintain stable urea production.
After reviewing the matter, the cabinet ratified the ECC’s decision to continue gas supply to both fertiliser plants.
