Pakistan cancels 21 LNG cargoes under long-term deal with Italy’s Eni

November 04, 2025 (MLN): Pakistan has struck a deal to cancel 21 liquefied natural gas (LNG) cargoes under its long-term contract with Italy’s Eni, as part of efforts to curb excess imports that have flooded its gas network, as reported by Reuters.

A letter from state-owned Pakistan LNG Ltd (PLL) to the Ministry of Energy dated October 22 said 11 cargoes planned for 2026 and 10 for 2027 would be cancelled at the request of gas distributor SNGPL.

Only the January shipments in both years, and the December 2027 shipment, would be retained to meet peak winter demand.

Sources familiar with the matter said Eni agreed to the cancellations under the contract’s flexibility provisions. With LNG prices strong globally, suppliers can often earn more from spot market sales than through long-term contracts. Eni declined to comment, while PLL, SNGPL, and Pakistan’s petroleum ministry did not respond to Reuters’ requests for comment.

The move marks one of Pakistan’s most significant steps yet to rein in LNG purchases, as growing renewable power generation and reduced industrial demand have left the country with a gas surplus.

Eni signed the supply deal with PLL in 2017, committing to deliver one cargo per month until 2032, with options to divert shipments elsewhere.

Pakistan is also in talks with Qatar about adjusting gas supplies, with options including deferring or reselling some cargoes under existing contract terms, according to officials familiar with the talks.

Pakistan’s long-term LNG supply contracts with Qatar and Eni together account for about 120 cargoes annually. However, LNG imports have dropped sharply this year amid higher hydropower and solar output, leaving the system oversupplied for the first time in years.

The gas glut has forced authorities to sell at steep discounts, curb local production, and explore offshore storage or resale options. Eni’s last cargo to Pakistan arrived on January 3, 2024, and both sides have reportedly agreed that no shipments will take place in 2025.

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