QatarEnergy officials will meet counterparts in Pakistan next week to finalise requests by Islamabad to reduce gas shipments next year as demand languishes, according to a Bloomberg report on Wednesday.
The report stated that talks are planned with officials from Pakistan State Oil Co. on Monday and Tuesday, according to people with knowledge of the matter.
Pakistan’s government is asking Qatar to either delay or resell two dozen cargoes on the international market due to falling energy needs, the people said, asking not to be identified because the information isn’t public.
“While this is a regularly scheduled meeting for next year’s supply, it’s being closely watched by traders because of the volume that Islamabad is seeking to reduce. Qatar is Pakistan’s largest LNG supplier, and all of the shipments are purchased under long-term contracts,” the report read.
Pakistan’s gas and power demand has dropped since the government was forced to increase domestic prices to secure loans from the International Monetary Fund (IMF), a move aimed at reducing utility debts. A boom in solar generation has also cut gas consumption.
Pakistan Petroleum Minister Ali Pervaiz Malik told Bloomberg News that the nation’s state-owned importer is coordinating with Qatar. “The government needs to lock in a plan for next year’s supplies by Nov. 15”, he said in a statement.
Earlier this month, QatarEnergy agreed with Shell to acquire a 27% participating interest in a block offshore Egypt from the oil and gas major.
QatarEnergy has in recent years acquired stakes in oil and gas basins including in Guyana, Lebanon, Namibia and South Africa as part of a strategy to expand its global presence.
It recently also acquired several exploration blocks offshore Egypt.
In August, Business Recorder citing sources reported that Pakistan would table four options before the Qatari authorities for rationalisation of LNG cargoes due to limited available flexibility for cargo reduction options.
