Qatar Extends Force Majeure on LNG Supplies to Pakistan

QatarEnergy has extended its force majeure on long term LNG supplies to Pakistan by another month, forcing the country to continue purchasing more expensive spot LNG cargoes until at least the end of August.

Petroleum Minister Ali Pervaiz Malik confirmed that the force majeure, first declared on March 4 following the attack on Qatar’s Ras Laffan LNG export complex, has now been extended through August. Pakistan now expects contracted LNG supplies from Qatar to resume in September, provided the restrictions are lifted.

The minister said he will brief Prime Minister Shehbaz Sharif on the latest developments and seek diplomatic engagement with Qatar’s leadership to secure an earlier restoration of contracted LNG deliveries.

Pakistan had previously secured five LNG cargoes from Qatar that were loaded before the disruption at Ras Laffan. However, those shipments were delayed after the United States-Iran conflict disrupted maritime traffic through the Strait of Hormuz. All five cargoes have now reached Pakistan, leaving no additional preloaded shipments available under the existing arrangement.

As a result, the government has increasingly relied on the international spot market to meet domestic gas demand.

So far this year, Pakistan has received five contracted LNG cargoes from Qatar under its government-to-government agreement, priced at 13.37 percent of Brent crude. The country has also imported three spot LNG cargoes, with a fourth scheduled to arrive on July 10-11 after being purchased through competitive bidding at $17.37 per MMBtu.

Once the latest shipment arrives, Pakistan’s LNG imports this year will total nine cargoes, including five under long term contracts and four spot purchases, highlighting the country’s growing dependence on higher priced spot LNG amid continued disruption to contracted supplies.