Pakistan has struck a deal to cancel 21 liquefied natural gas cargoes under a 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 cancellations form part of a government effort to reduce a build-up of imported gas in the domestic system, the sources and the document indicated. Pakistan has longstanding arrangements to import LNG to meet domestic demand, and the agreement with Eni is one of the country's long-term supply commitments. Officials framed the move as a response to an imbalance between incoming shipments and the ability of the national network to absorb additional gas volumes, prompting steps to scale back scheduled deliveries.
Long-term LNG contracts underpin energy security in many countries by providing predictable supplies, but they can become difficult to manage when market or domestic demand conditions change. The decision to halt 21 cargoes represents a significant adjustment to a contractually committed flow of fuel and suggests Islamabad is prioritizing the immediate stability and operational capacity of its gas network over near-term import continuity. The official document and the sources did not detail the timing of the canceled cargoes, nor did they specify how the cancellations will be implemented or whether any financial settlements will be required under the contract.
Industry observers say adjustments to long-term gas deliveries can have multiple implications. For Pakistan, a reduction in arrivals should ease pressure on storage and transmission systems that have been described by officials as overwhelmed by imports. At the same time, depending on contractual terms, cancelling cargoes under a long-term supply deal can raise questions about liabilities, rescheduling, and broader relations with suppliers. How those issues are resolved will determine near-term fiscal and supply impacts for the government and state utilities involved in importing and distributing gas.
The move also comes amid a wider international market where buyers frequently balance long-term commitments with spot and short-term purchases to match seasonal and economic demand. In this case, Pakistan’s decision to cancel multiple cargoes under a long-term arrangement underscores the operational challenge it faces in aligning contracted volumes with domestic offtake. The official document and the two sources that reported the deal did not provide detail on whether the cancellations reflect a temporary measure tied to short-term network constraints or a longer-term recalibration of the country’s import strategy.
Both the government and Eni have not publicly detailed the arrangement in the material cited by the report, and it is not clear when formal confirmations or further contract disclosures will be released. Market participants and policy watchers will be closely watching any subsequent announcements for information on the schedule of cancelled shipments, whether contract clauses will require compensation or rescheduling, and how the cancellations will affect Pakistan’s overall energy planning for the coming months.
For now, the action to cancel 21 cargoes is the latest indication that Pakistan is taking active steps to manage an oversupplied gas network. The practical outcomes—on supplier relationships, fiscal exposures and consumer supply—will depend on contractual negotiations and operational decisions that have yet to be made public.