Pakistan Cancels 21 LNG Cargoes From Italy Amid Gas Surplus

Pakistan has cancelled 21 liquefied natural gas (LNG) cargoes from Italy's Eni under a long-term supply contract, reflecting a significant shift in the country's energy needs due to a domestic gas surplus driven by increased renewable power generation and reduced industrial demand. The cancellations include 11 cargoes scheduled for 2026 and 10 for 2027, with only peak winter shipments in January for both years and December 2027 retained to meet seasonal demand. Eni agreed to the cancellations under contractual flexibility clauses, benefiting from strong global LNG demand where spot market sales often yield higher profits than long-term contracts. Pakistan is also negotiating with Qatar to defer or resell LNG cargoes under similar contract provisions, as the combined long-term contracts with Eni and Qatar cover around 120 annual cargoes. This move aims to reduce financial pressure from excess LNG imports, avoid losses related to unused gas, and encourage the balancing of energy import costs with increased local and renewable energy sources. The gas surplus has also forced Pakistan to sell LNG at discounts, cut local production, and explore storage or resale options to manage the oversupply.