Pakistan Cancels 21 LNG Cargoes Under Eni Deal
Pakistan has decided to cancel 21 liquefied natural gas (LNG) cargoes under its long-term contract with Italy’s Eni to control rising surplus gas supplies.
According to a document from Pakistan LNG Limited (PLL) dated October 22, the cancellation includes 11 shipments planned for 2026 and 10 for 2027.
Only three cargoes — one in January each year and one in December 2027 — will continue to meet seasonal winter demand requirements.
Officials familiar with the matter confirmed the decision was mutually agreed under contractual flexibility clauses between Pakistan and Eni, originally signed in 2017.
The Italian energy company accepted the cancellation, as global LNG markets currently offer better profits for suppliers through spot trading instead of fixed long-term contracts.
Neither Eni, PLL, nor the Ministry of Petroleum has publicly issued a statement regarding the development or its financial implications for Pakistan.
The decision marks one of most notable steps to limit LNG imports amid declining industrial demand and growing renewable energy generation across the country.
Falling local consumption has created an unexpected gas surplus, compelling energy authorities to reassess upcoming shipments and align them with reduced demand projections.
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Pakistan is also in discussions with Qatar to adjust LNG supplies, exploring deferrals or re-exports of excess cargoes under existing contractual arrangements.
A Qatari technical delegation recently visited Karachi to finalize shipment schedules, though no conclusive decision has been reached between both sides yet.
The long-term LNG contracts of Pakistan with Eni and Qatar together cover about 120 annual cargoes, including nine monthly from Qatar and one from Eni.
However, total LNG imports have fallen this year as solar and hydropower generation increased and several industries shifted toward self-generated electricity sources.
The ongoing oversupply has pushed the government to sell surplus gas at discounted rates and explore potential offshore storage solutions to prevent losses.
Data shows Eni last delivered an LNG shipment to Pakistan on January 3, 2024, before both parties agreed to suspend deliveries throughout 2025.
By scaling down future LNG inflows, Pakistan aims to stabilize its energy imports, optimize storage capacity, and avoid additional financial pressure on the national grid.
