Pakistan has made a significant decision to cancel 21 cargoes of Liquefied Natural Gas (LNG) contracted with an Italian company, following a reassessment of the country’s energy demand and strategy. This move is expected to have notable implications for Pakistan’s energy future.
According to sources within the Petroleum Division, the cancelled LNG cargoes were scheduled for delivery under an agreement with the Italian firm. Pakistan LNG Limited (PLL) has a long-term contract with the company to import one LNG cargo every month.
New Import Strategy:
Under the revised strategy, Pakistan will now purchase only 2 LNG cargoes in 2026, instead of the 12 originally planned. These two shipments are scheduled for delivery in January and December 2026.
Sources further indicated that in 2027, only one cargo will be taken from the same Italian company, scheduled for January delivery.
This major decision was made after estimating the actual gas requirements of the country. Petroleum Division sources confirmed that the cancellation of the 21 cargoes was executed after assessing the current gas demand communicated by Sui Northern Gas Pipelines Limited (SNGPL). The move is also expected to impact the country’s trade balance and foreign exchange reserves.
