Pakistan Cancels Huge LNG Order From Italy Amid Worsening Crisis

Pakistan has cancelled 21 liquefied natural gas (LNG) cargoes from Italy’s Eni under a long-term contract as a huge gas surplus troubles its network, Reuters reported. 11 cargoes for 2026 and 10 for 2027 have been scrapped so far at the request of Sui Northern Gas Pipelines Limited (SNGPL). Only the January shipments for both years and one in December 2027 will be retained to meet peak winter demand. Italy’s Eni agreed to the cancellation under favorable clauses that would allow it to reap good profit from spot market sales. Pakistan is also negotiating with Qatar to defer or resell additional LNG volumes, but no decision has been reached as of now. Combined, the Eni and Qatar contracts cover around 120 annual cargoes. The oversupply has forced Pakistan to sell gas at heavy discounts, cut local production, and consider offshore storage or resale options. Eni last delivered a cargo to Pakistan on January 3, 2025, after sending 12 shipments in 2024. Both sides have agreed to halt all 2025 deliveries.