The federal cabinet has approved the diversion of 45 liquefied natural gas (LNG) cargoes because of shrinking consumer demand in the country.
The Economic Coordination Committee (ECC) has already approved the diversion of LNG cargoes. Its decision was tabled before the cabinet in a recent meeting, where the proposal was ratified.
Sources told The Express Tribune that 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 approval.
During discussion, the Petroleum Division apprised the forum that owing to persistently thin demand for gas in the country, Pakistan State Oil (PSO) had surplus stock of imported LNG. It revealed that after negotiations with Qatar, an optimal and mutually agreed solution was reached, which allowed sale of up to 24 LNG cargoes on a net proceeds differential (NPD) basis in 2026. The meeting was informed that another agreement was struck with energy major Eni for the sale of 11 cargoes during 2026 and 10 cargoes during 2027 on a NPD basis. The cabinet, after carefully deliberating the matter, gave the go-ahead for the decision taken by the ECC.
Regarding the urea manufacturing plants connected to Sui Northern Gas Pipelines Ltd (SNGPL) network, the cabinet gave directives that since long-term arrangements for the provision of gas to the fertiliser industry were being finalised, further deliberations by the cabinet committee on the pricing of gas supplied to the fertiliser industry would not be required.
Discussing the supply of gas to two SNGPL-based urea plants, namely Fatima Fertiliser and Agritech, it was highlighted that the cabinet had on August 22, 2025 allowed the supply of gas to the two fertiliser manufacturers under the existing arrangements up to October 30, 2025.
The cabinet was apprised that the ECC had recommended that gas supply to the two fertiliser plants should continue till December 31, 2025 and that long-term arrangements for the provision of gas to the fertiliser industry were being finalised.
After considering the matter in detail, the cabinet ratified the decision taken by the ECC.Latest News, Breaking News & Top News Stories | The Express TribuneOur CorrespondentRead More
