Qatar has agreed to divert 24 liquefied natural gas (LNG) shipments in 2026 under a “net proceeds differential” arrangement due to falling demand in Pakistan.

Under this deal, Pakistan will bear any losses if Qatar sells LNG on the international market below the contracted price. These costs will be passed on to local consumers, and the government plans to issue guidelines through the Oil and Gas Regulatory Authority (Ogra) to manage the impact.

Pakistan State Oil (PSO) confirmed that Qatar Energy has accepted the arrangement for 24 cargoes next year. This follows similar steps in 2025 when some LNG shipments from Qatar and Eni were sold or deferred because power producers used less gas than expected.

The move comes amid surplus LNG in the country, especially for Sui Northern Gas Pipelines Limited (SNGPL). PSO and SNGPL had earlier estimated a surplus of about 177 cargoes from 2025 to 2031, roughly 24 cargoes per year, prompting discussions with Qatar Energy to adjust deliveries.

In August 2025, a Pakistani government delegation met with Qatar Energy in Doha to find solutions for the surplus. Options included reducing cargoes, postponing deliveries, or using the net proceeds differential system, which spreads the financial impact between Pakistan and Qatar Energy.

Following these talks, Qatar Energy agreed to apply the net proceeds differential for 24 LNG cargoes in 2026. The mechanism will also apply to 21 cargoes from Eni—11 in 2026 and 10 in 2027—ensuring Pakistan can manage its LNG supply while addressing reduced domestic demand.

This arrangement aims to maintain stable gas deliveries while minimizing financial losses for both Pakistan and Qatar Energy.