Pakistan is seeking to renegotiate its long-term LNG deal with Qatar to cut surplus imports and ease billions in projected financial losses.

Pakistan is looking to renegotiate its long-term liquefied natural gas (LNG) import agreement with Qatar as the country faces an oversupply caused by declining industrial demand and lower electricity consumption.

According to Pakistan’s Express Tribune, the Economic Coordination Committee (ECC) approved the move during a closed-door meeting, authorising the Petroleum Division to restart talks with Qatar to align LNG volumes with current demand.

Officials say Pakistan is receiving more LNG than it can use, leading to surplus cargoes and projected financial losses of between $1.2 billion and $1.5 billion over the next 18 months.

Under the existing deal with QatarEnergy, which runs until 2031, Pakistan is contractually obliged to import up to nine LNG cargoes each month. The government now aims to cut this to six or seven.

Sources told the Express Tribune that the ECC is also weighing suspending local gas production from fields producing 300–400 million cubic feet per day (MMcfd) to make room for Qatari LNG. Another option is redirecting surplus LNG to the domestic residential sector.

Those familiar with the talks said Pakistan may request an extension of the contract’s expiry date to push surplus cargoes beyond 2031.

Federal Petroleum Minister Ali Pervaiz Malik is expected to visit Qatar soon, according to the Express Tribune.

In July, Reuters reported that Pakistan was considering ways to offload surplus LNG, with at least three unused Qatari cargoes already sitting idle.