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Pakistan cancels Eni LNG cargoes, seeks to renegotiate Qatar supplies

Pakistan cancels Eni LNG cargoes, seeks to renegotiate Qatar supplies
An offshore LNG regasification terminal, the FSRU Toscana, is towed into Valletta's Grand Harbour July 1, 2013. (REUTERS/File)
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Updated 3 min 56 sec ago

Pakistan cancels Eni LNG cargoes, seeks to renegotiate Qatar supplies

Pakistan cancels Eni LNG cargoes, seeks to renegotiate Qatar supplies
  • Move comes amid surplus gas in Pakistan due to lower industrial demand, higher renewable output
  • Islamabad also in talks with Qatar to defer or resell LNG cargoes under existing supply agreements

KARACHI: Pakistan has struck a deal to cancel 21 liquefied natural gas cargoes under its long-term contract with Italy’s Eni as part of a plan to curb excess imports that have flooded its gas network, according to an official document and two sources.

The document from state-owned Pakistan LNG Ltd. (PLL) to the country’s Ministry of Energy dated October 22 said 11 cargoes planned for 2026 and 10 for 2027 would be canceled at the request of gas distributor SNGPL.

Only the planned January shipment in both years, and the December shipment in 2027, would be retained to meet peak winter demand, according to the document, reviewed by Reuters.

Two sources familiar with the matter in Pakistan said that Eni had agreed to the move under the contract’s flexibility provisions. LNG is in strong demand globally, and suppliers typically stand to earn more by selling cargoes in the spot market than under long-term contracts.

Eni declined to comment. PLL, SNGPL, and Pakistan’s petroleum ministry did not reply to requests for comment.

RENEGOTIATING SUPPLIES FROM QATAR

PLL’s move marks one of Pakistan’s most significant steps yet to rein in LNG purchases as rising renewable generation and lower industrial demand leave it with surplus imported gas.

Eni signed a long-term LNG supply deal with PLL in 2017, committing to deliver one cargo per month until 2032, with the option to divert shipments to other destinations.

The first source, and a third, said that Pakistan was also in talks with Qatar about gas supplies from the Gulf state, with options including deferring some cargoes or reselling them under existing contract clauses. Last week a technical team visited Karachi to schedule the cargoes. The talks are ongoing and no decision has been reached, the first and third sources said.

QatarEnergy did not immediately respond to a request for comment.

TOO MUCH GAS, TOO LITTLE DEMAND

Pakistan’s long-term LNG supply deals with Qatar and Eni together cover around 120 cargoes a year, including on average nine a month from two Qatari contracts and one from Eni.

But Pakistan’s LNG imports have fallen sharply this year as demand from power producers dropped amid higher solar and hydropower output.

Lower gas use by power plants and industrial units generating their own electricity have added to the surplus, leaving the system significantly oversupplied for the first time in years.

The glut has forced Pakistan to sell gas at steep discounts, curb local production, and consider offshore storage or reselling excess cargoes, according to government presentations reviewed by Reuters.

Eni’s last delivered cargo to Pakistan was received at the GasPort terminal on January 3, according to Kpler data. The first source, and a fourth one, said Pakistan had also agreed a deal with Eni not to receive any further cargoes in 2025.

Eni shipped out 12 cargoes to Pakistan in 2024. 


Pakistan raises Indus treaty concern at Doha summit, warns India against ‘weaponizing water’

Pakistan raises Indus treaty concern at Doha summit, warns India against ‘weaponizing water’
Updated 13 sec ago

Pakistan raises Indus treaty concern at Doha summit, warns India against ‘weaponizing water’

Pakistan raises Indus treaty concern at Doha summit, warns India against ‘weaponizing water’
  • Pakistani president says threat to cut off its water supply violates Indus Waters Treaty
  • Zardari urges global solidarity for social justice, poverty eradication, sustainable growth

ISLAMABAD: President Asif Ali Zardari said on Tuesday Pakistan faced a “new threat in the form of the weaponization of water,” accusing India of violating the Indus Waters Treaty during his address to the World Summit for Social Development in Doha.

The 1960 treaty, brokered by the World Bank, divides the waters of the Indus River system between India and Pakistan and has long been regarded as one of the world’s most durable water-sharing agreements. It allocates the three western rivers — Indus, Jhelum and Chenab — to Pakistan, and the eastern rivers — Ravi, Beas and Sutlej — to India.

Tensions over water have intensified in recent years as India expanded hydropower projects on western-river tributaries. Pakistan has repeatedly voiced concern that such developments could reduce downstream flows, while New Delhi maintains they remain within treaty limits.

In April 2025, following a militant attack in India-administered Kashmir that New Delhi blamed on Pakistan, India announced it was placing the Indus Waters Treaty in abeyance. The treaty had never before been suspended despite decades of conflict. Pakistan has said any attempt to stop its share of waters will be considered an “act of war.”

“We have been threatened from across the border with a new threat in the form of weaponization of water, violation of the Indus Water Treaty,” Zardari said at the UN summit. 

“This was a serious threat to the cut of water off for 240 million Pakistanis. Such tactics cannot and will not succeed.”

Zardari also endorsed the Doha Political Declaration, the outcome document of this year’s UN summit that renews global commitments to eradicate poverty, promote full and productive employment, and strengthen social inclusion. He urged nations to unite around “equality, dignity and solidarity” and called for reforms in global finance to ensure fair development funding through debt relief, equitable taxation and affordable social investment.

The president highlighted Pakistan’s Benazir Income Support Programme (BISP), the country’s flagship cash-transfer initiative launched in 2008 to assist low-income households, which Zardari said had empowered more than nine million families through income assistance, health care and education support. He also announced plans to raise literacy to 90 percent within five years and expand climate-resilient programs such as the Green Pakistan Initiative and mangrove restoration.

Zardari also used the summit to condemn the humanitarian crisis in Gaza, calling for a lasting peace in the Middle East and denouncing what he described as “genocide, apartheid and mass starvation” against Palestinians. He reaffirmed Pakistan’s long-standing support for the “right to self-determination” of both Palestinians and Kashmiris, saying their struggles were “two sides of the same coin.” 

Pakistan does not have diplomatic ties with Israel and has consistently backed UN resolutions calling for an independent Palestinian state, while it also supports the implementation of UN resolutions on Kashmir, a disputed Himalayan region claimed by both Pakistan and India.