Eni, the Italian energy giant, has announced that their scheduled delivery of liquefied natural gas (LNG) to Pakistan LNG Limited for February has been disrupted due to an event of force majeure.
Despite having a 15-year deal to supply Pakistan LNG with one cargo a month from 2017 to 2032, Eni claims that they do not benefit from the disruption and it is out of their control.
In a statement, Eni stated that all previous disruptions in LNG delivery have been caused by the supplier failing to fulfill its obligations. Similarly, Eni did not take advantage of or benefit from these defaults and managed disruptions in accordance with all contractual provisions.
Pakistan has been struggling to procure spot cargoes of LNG amid elevated global gas prices, and long-term deals are not sufficient to meet the country’s rising fuel demand. This comes as Pakistan imported 9 billion cubic meters of LNG last year, a 20% drop from the previous year.
The country has been facing a gas shortage for a long time and the government is trying to diversify its energy mix to reduce the dependence on natural gas. The government has been encouraging the use of alternative energy sources such as solar and wind power to reduce the gap between supply and demand.
Despite the challenges, Pakistan is still looking to import more LNG to meet its energy needs in the future.