Pakistan Cancels Major LNG Deal with Italy’s Eni Amid Energy Surplus
Nov 4, 2025
Pakistan has decided to cancel 21 liquefied natural gas (LNG) cargoes from Italy’s Eni under a long-term supply agreement, as the country faces an unexpected gas surplus in its network, according to a report by Reuters.
The cancelled shipments include 11 cargoes for 2026 and 10 for 2027, following a request from Sui Northern Gas Pipelines Limited (SNGPL). Only the January cargoes for both years and one shipment in December 2027 will be retained to meet peak winter demand.
Eni agreed to the cancellation under mutually beneficial terms, allowing the company to benefit from spot market sales amid higher global LNG prices.
Meanwhile, Pakistan is also in talks with Qatar to reschedule or resell additional LNG volumes, though no final decision has been made yet.
Together, the Eni and Qatar contracts account for roughly 120 cargoes per year. The current oversupply has led Pakistan to reduce local gas production, offer discounted sales, and explore offshore storage or resale options.
Eni last supplied LNG to Pakistan on January 3, 2025, after completing 12 shipments in 2024. Both sides have now agreed to suspend all deliveries for 2025.
