Islamabad, November 4, 2025: Pakistan has reached an agreement with Italy’s Eni to cancel 21 liquefied natural gas (LNG) cargoes scheduled under a long-term supply contract, as part of efforts to manage an oversupply that has overwhelmed its gas distribution network, according to an official document and multiple sources.
A letter from Pakistan LNG Limited (PLL) to the Ministry of Energy, dated October 22, stated that 11 cargoes for 2026 and 10 for 2027 would be cancelled at the request of gas distributor Sui Northern Gas Pipelines Limited (SNGPL).
Under the revised schedule, only shipments for January 2026 and 2027, along with December 2027, will be retained to meet peak winter demand.
Sources familiar with the matter confirmed that Eni had agreed to the adjustment under the contract’s flexibility clauses. LNG suppliers are currently benefiting from strong global demand, with higher prices available in the spot market compared to long-term contracts.
Neither Eni, PLL, SNGPL, nor the Petroleum Division commented on the development.
The decision represents one of Pakistan’s most significant moves yet to reduce LNG imports, as increased renewable generation and weaker industrial demand have left the system oversupplied.
Eni had signed a 15-year LNG supply deal with Pakistan in 2017, committing to deliver one cargo per month until 2032, with an option to divert shipments elsewhere.
Industry sources also said that Pakistan is in talks with Qatar—its largest LNG supplier—about deferring or reselling some cargoes under existing contracts. A technical team from Qatar Energy visited Karachi last week for scheduling discussions, which are still ongoing.
Pakistan’s long-term LNG contracts with Qatar and Eni together cover around 120 cargoes a year, including nine monthly from Qatar and one from Eni.
However, LNG imports have dropped sharply this year as solar and hydropower generation increased, and industrial consumers shifted to self-generation, creating a rare supply glut in Pakistan’s gas network.
The surplus has forced the government to sell gas at discounted rates, reduce local production, and explore offshore storage or resale options, according to internal government documents reviewed by Reuters.
Data from Kpler shows Eni’s last cargo to Pakistan was received at GasPort terminal on January 3, 2025. Sources added that Pakistan and Eni have also agreed not to deliver any cargoes in 2025 under their revised arrangement.
