The Pakistan government is to ask QatarEnergy to defer on LNG cargoes as it forecasts a supply surplus until 2031 which will cost it $5.64bn, according to local media reports.

Pakistan faces a projected surplus of 177 cargoes over the next six years, the reports claim, reflecting weakening domestic demand for imported LNG.

Its Economic Coordination Committee has authorised the Petroleum Division to try to renegotiate contract terms.

Following a memorandum of understanding signed in 2025,  the country’s Pakistan State Oil (PSO) signed two long-term sale and purchase agreements with QatarEnergy in 2016 and 2021. Separately Pakistan LNG signed a 15-year supply contract with Eni in 2017.

PSO can request deferment of up to five cargoes in any contract year but this has already been exercised in 2025.

Warnings of upcoming excess LNG supply are well documented, with around 295 bcm/year expected to come online between now and 2030.

While deferrals can occur without financial penalties, any deferral is ultimately subject to the terms of the existing contract.

The country has two regasification terminals in Port Qasim with a combined import capacity of about 9.8 Mt a year.

QatarEnergy is targeting a major increase in LNG production capacity to 142 million tonnes per annum before the end of this decade.