Pakistan to cancel 21 LNG cargoes

Pakistan will cancel 21 LNG cargoes under its long-term deal with Italy’s Eni. Officials made the decision to reduce surplus gas in the system.

A document from Pakistan LNG Ltd (PLL) to the Ministry of Energy, dated October 22, shows 11 cargoes for 2026 and 10 for 2027 will be canceled.

Only the January shipment in both years and the December 2027 shipment will arrive to meet peak winter demand. The cancellations follow a request from gas distributor SNGPL.

Two sources said Eni agreed to the move under contract flexibility clauses. LNG has high global demand, and suppliers often earn more selling cargoes on the spot market than under long-term contracts. Eni, PLL, SNGPL, and Pakistan’s petroleum ministry declined to comment.

Pakistan also holds talks with Qatar to adjust gas supplies. Options include deferring shipments or reselling cargoes under existing agreements.

A technical team recently visited Karachi to schedule deliveries, but no final decision has been reached. Qatar Energy has not responded to requests for comment.

Rising solar and hydropower generation has lowered gas demand from power plants. Industries producing their own electricity have further reduced gas use.

The surplus forced Pakistan to sell gas at steep discounts, cut local production, and consider storage or resale options.