The government has decided to shift the financial burden of potential losses from diverted LNG cargoes onto RLNG consumers.
Previously, losses arising under the Net Proceed Differential (NPD) clause were absorbed by the state or Pakistan State Oil (PSO). Now, the cost will be passed directly to consumers, including RLNG-based power plants, export-oriented industries, and new domestic users with RLNG gas connections, reported a national daily.
Islamabad is currently negotiating with Qatari authorities to divert between 24 and 29 LNG cargoes in 2026 to the international market under the NPD provision. The NPD clause stipulates that if a diverted cargo sells for more than Pakistan’s contracted price, all profits go to Qatar.
If the cargo sells for less, the loss is typically absorbed by PSO. Qatar is expected to confirm the number of cargoes to be diverted by November 30, with officials anticipating the lower end of the range.
The Oil and Gas Regulatory Authority (OGRA) recently projected a positive impact of Rs. 48 billion from potential cargo diversions in its latest pricing determination.
The regulator stated that domestic consumers would continue to receive local gas at 1,000 rupees per MMBTU until June 30, 2025, rather than the RLNG-linked price of 3,500 rupees per MMBTU. However, there are questions about whether OGRA’s calculations fully accounted for the risk of losses from diverted cargoes.
Officials warn that passing NPD-related losses to consumers will likely increase RLNG prices across key sectors. The cost of electricity generation using RLNG will rise, export industries will face higher fuel tariffs, and new domestic consumers seeking RLNG connections will see steeper gas bills.
Despite these concerns, the government argues that if Qatar approves the diversion plan, Pakistan could save approximately $339.6 million in foreign exchange, based on the term cargo price of $28.3 million per shipment.
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The public to pay for the mistakes made by the government. What’s new about that?
So why not take away the jobs of those incompetent ministers who can’t negotiate
If I do something wrong on the job I get fired. Do same for these policy makers. They are paid to do their job not make excuses
Congratulations! Cast more of your votes to these good-for-nothing goofs. A silent, sleeping and insensitive nation deserves this all. Where is SIFC which pokes its nose in every matter and takes the credit for the slightest achievement?
The public did not vote for these Form 47 beneficiaries by Bajwa/Asim duo. This government and Military establishment rule is not representative of people’s will nor do they have any mandate for the same.
What about previous Saqib/ Bajwa duo that caused actual downfall of the nation, politically, economically and morally which still striving to overcome.
What Government of Pakistan Saves from Qatari Diversion Plan of Dollars 337.8 million is about **94.94 Billion Rupees Pak Govt Should absorb INTO RLNG COST AND NOT INCREASE ITS LOCAL PRICE TO GIVE RELIEF TO LOCAL COMMERCIAL AND PRIVATE CONSUMERS. WHY PPP GOVT IN 2005 PAST FAILIURS OF CORRUPTION CONSUMERS PAY IN PRESENT SCENARIO??**
What a wonderful purchase agreement was done by our wise government. The conditions always set for the benefit of other party
The responsible may be punished and why the burden is shifted to the consumers