ENI unable to deliver Feb LNG cargo to Pakistan, declares force majeure
KUALA LUMPUR (Reuters) - Eni said on Wednesday that the delivery of a liquefied natural gas (LNG) cargo to Pakistan LNG Limited that 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 and due to an event of force majeure. ENI does not benefit in any way from the situation," said the company in a statement to Reuters.
"All the previous disruptions in LNG delivery suffered by ENI have been caused by the LNG supplier who didn't fulfill the agreed obligations. Also in these cases, ENI did not take advantage or benefit in any way from these defaults and applied all contractual provisions to manage such disruptions."
Pakistan has struggled to procure spot cargoes of LNG amid elevated global gas prices, which spiked to record highs last year following Russia's invasion of Ukraine.
LNG shipments to Pakistan under long-term deals are insufficient to match the country's rising fuel demand.
Pakistan LNG, a government subsidiary that procures LNG from the international market, did not immediately respond to a request for comment.
Pakistan imported 9 billion cubic metres (bcm) of LNG last year, according to Refinitiv data, down nearly 20% from 11.2 bcm in 2021.
(Reporting by Emily Chow; Editing by Simon Cameron-Moore)