Pakistan to Reopen Shut Gas Fields as Qatar Agrees to Cancel Surplus LNG Cargoes

The federal government has decided to reopen domestic gas fields that were previously shut down due to surplus imported LNG, after Qatar agreed to cancel additional LNG cargoes for the year 2026, sources in the Ministry of Petroleum confirmed.

According to officials, gas from the closed local gas fields will start flowing into the national system from January 2026. These gas wells had been shut down earlier to accommodate surplus imported LNG cargoes, which could not be consumed by the power sector.

Sources said Qatar has agreed to cancel 24 surplus LNG cargoes scheduled for 2026. As a result, Pakistan will import only 85 LNG cargoes instead of the previously planned 120 next year.

Officials revealed that due to surplus LNG, nearly 200 million cubic feet per day (MMCFD) of domestic gas production had to be halted. The excess LNG was being injected into gas pipelines, creating pressure management risks. To prevent pipeline damage and potential ruptures, domestic gas fields were temporarily closed.

Overall, 35 LNG cargoes will be cancelled, including 24 cargoes from Qatar and 11 from ENI. The cancellation of these surplus cargoes is expected to save Pakistan approximately Rs201 billion.

Senior officials from the Petroleum Ministry stated that the cancellation of excess LNG cargoes will help meet the financial requirements of the gas sector. The total financial requirement of Sui gas companies stands at Rs850 billion, which is now expected to be managed.

The officials further disclosed that the circular debt of the gas sector has reached Rs3,100 billion, including Rs1,700 billion in principal and Rs1,400 billion in accumulated interest. A six-year plan has been prepared to manage and gradually reduce the circular debt stock.

The proposed plan includes three options and will be presented to the federal cabinet for approval. These options include the imposition of a Rs5 petroleum levy, dividend adjustments of gas companies, and partial or full waiver of interest on circular debt.

The decision to reopen domestic gas fields and rationalize LNG imports is expected to ease pressure on Pakistan’s energy sector and reduce reliance on costly imported fuel.