Eni says February LNG cargo disrupted by force majeure

Eni says February LNG cargo disrupted by force majeure

KUALA LUMPUR Eni said on Wednesday that the delivery of a liquefied natural gas LNG cargo to Pakistan LNG LimitedLNG Limited, which was scheduled for February, has been disrupted due to an event of force majeure.

The Italian major has a 15 year deal to supply Pakistan LNG with one cargo a month from 2017 to 2032.

February LNG delivery disruption is beyond the reasonable control of ENI due to an event of force majeure. ENI is not benefitting from the situation, said the company in a statement to Reuters.

The LNG supplier who didn't fulfill the agreed obligations has caused all of the previous disruptions in LNG delivery suffered by ENI. In these cases, ENI did not take advantage of or benefit from these defaults and applied all contractual provisions to manage such disruptions. Pakistan has struggled to get spot cargoes of LNG amid rising global gas prices, which spiked to record highs last year after Russia invaded Ukraine.

LNG shipments to Pakistan under long term deals aren't enough to match the rising fuel demand.

Pakistan LNG, a government subsidiary that procures LNG from the international market, did not respond immediately to a request for comment.

Pakistan imported 9 billion cubic meters bcm of LNG last year, down nearly 20 per cent from 11.2 bcm in 2021, according to Refinitiv data.