KARACHI: Pakistan has struck a deal to cancel 21 liquefied natural gas cargoes under its long-term contract with Italy’s Eni as part of a plan to curb excess imports that have flooded its gas network, according to an official document and two sources.
The document from state-owned Pakistan LNG Ltd. (PLL) to the country’s Ministry of Energy dated October 22 said 11 cargoes planned for 2026 and 10 for 2027 would be canceled at the request of gas distributor SNGPL.
Only the planned January shipment in both years, and the December shipment in 2027, would be retained to meet peak winter demand, according to the document, reviewed by Reuters.
Two sources familiar with the matter in Pakistan said that Eni had agreed to the move under the contract’s flexibility provisions. LNG is in strong demand globally, and suppliers typically stand to earn more by selling cargoes in the spot market than under long-term contracts.
Eni declined to comment. PLL, SNGPL, and Pakistan’s petroleum ministry did not reply to requests for comment.
