ISLAMABAD: As Pakistan will continue to pay $538,535 per day — nearly $15 million per month — in capacity and utilization charges to its two RLNG terminals despite the force majeure declared by QatarEnergy on March 4 on LNG supplies to buyer countries, following the halt of LNG production on March 2, Federal Minister for Petroleum Ali Pervaiz Malik termed the agreements “faulty” and “not in favour of the country,” questioning the rationale behind continuing payments during a force majeure situation.
The country, which has so far imported LNG worth $35 billion, has already paid around $3 billion in capacity charges alone, making the ongoing financial burden particularly alarming amid a worsening external account position. Soon after QatarEnergy declared force majeure on March 4, Pakistan’s key energy entities — Pakistan State Oil, Sui Southern Gas Company, Sui Northern and Pakistan LNG Limited — also invoked force majeure under their respective agreements.
Senior officials in the Petroleum Division confirmed that government entities, including Sui Southern Gas Company and Pakistan LNG Limited, had also invoked force majeure under their respective agreements. However, the contracts signed with Engro Elengy Terminal Pakistan Limited (EEPTL) and Pakistan GasPort Limited (PGPCL) require uninterrupted payment of capacity charges in US dollars — even when LNG supply is disrupted and no regasification takes place.
This means Pakistan remains locked into payments despite receiving no gas, exposing what officials describe as a critical flaw in the structure of long-term LNG terminal agreements.
