Pakistan's LNG Cargo Cancellation: A Strategic Move Towards Energy Optimization
Pakistan has cancelled 21 LNG cargoes from Italy's Eni to reduce excess imports that have overwhelmed its gas network. The decision, driven by rising renewable energy output and declining industrial demand, aims to optimize energy supply amid ongoing talks with Qatar for renegotiated gas contracts.
In a strategic move to address its oversupplied gas network, Pakistan has cancelled 21 liquefied natural gas (LNG) cargoes as part of a long-term agreement with Italy's Eni. The deal aims to curb excess imports caused by increased renewable energy production and reduced industrial demand.
According to official documents reviewed by Reuters, Pakistan LNG Ltd (PLL) communicated the cancellation to the Ministry of Energy, indicating that 11 cargoes from 2026 and 10 from 2027 have been scrapped upon the request of gas distributor SNGPL. Only key shipments during peak winter demand will be retained.
Despite high global demand for LNG, Pakistan is managing surplus challenges by actively renegotiating contracts and exploring options with key suppliers like Qatar. Talks are ongoing, as Pakistan seeks alternatives such as deferring or reselling cargoes under existing clauses to better align with its energy needs.
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