Govt seeks to cut LNG imports from Qatar

Pakistan is set to formally request Qatar to reduce its liquefied natural gas (LNG) supplies in a bid to relieve pressure on gas utilities, as the country's power sector has shown reluctance to lift its allocated gas volumes. Currently, Pakistan imports 10 LNG cargoes per month under contractual agreements, with Pakistan State Oil (PSO) importing nine cargoes from Qatar and one from the Italian firm ENI. However, sources indicate that Sui Northern Gas Pipeline Limited (SNGPL) has asked PSO to cut back on LNG imports by deferring three cargoes each month. This means PSO would only import six LNG cargoes per month instead of nine, reflecting a decreased demand for gas within the country. LNG is primarily used in Pakistan's commercial and power sectors. The power sector, however, has refused to take its full allocation of LNG, citing a dip in electricity demand. Two main factors have contributed to this drop: rising electricity tariffs and a growing shift among consumers toward solar energy. Power distribution companies claim that approximately 7,000 MW of electricity has been added to the national grid through net metering, although they lack data on the off-grid solar electricity production, which is believed to be even higher. These companies also estimate that 80 MW of electricity is added to the grid each month through solar net metering.