Pakistan cancels 21 Eni LNG shipments, seeks to adjust Qatar deliveries - Assalamu alaikum
Assalamu alaikum - just sharing a brief update from Karachi about Pakistan’s LNG situation.
Pakistan has agreed to cancel 21 liquefied natural gas cargoes under its long-term deal with Italy’s Eni as part of efforts to cut back on surplus imports that have overwhelmed the gas system. A government document said SNGPL requested the cancellations: 11 cargoes planned for 2026 and 10 for 2027. Only the January shipment each year and the December 2027 cargo would be kept to cover peak winter needs.
Sources indicate Eni accepted the cancellations under contract flexibility clauses. Since LNG is in strong global demand, suppliers often earn more selling cargoes on the spot market than under long-term deals. Eni and Pakistani authorities didn’t comment when approached.
Pakistan is also in talks with QatarEnergy to renegotiate or defer some cargoes, or possibly resell them under existing contract terms. A technical team recently visited Karachi to plan schedules, but discussions are ongoing and no final decision has been announced.
Why the change? Rising solar and hydropower generation and reduced industrial demand have left Pakistan with too much imported gas. Long-term deals with Qatar and Eni cover roughly 120 cargoes a year, but imports have dropped sharply as power producers use more renewables and some industries generate their own electricity. The surplus has led to discounted sales, cuts to local production, and consideration of options like offshore storage or reselling extra cargoes.
Eni delivered 12 cargoes to Pakistan in 2024, with the last one received at GasPort on January 3. Sources also said Pakistan agreed not to take further Eni cargoes in 2025 under a related arrangement.
May Allah make things easy for Pakistan as they work through this energy challenge.
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