ENI unable to ship Feb LNG cargo to Pakistan, declares pressure majeure

KUALA LUMPUR, Jan 26 (Reuters) – Eni (ENI.MI) mentioned on Wednesday that the supply of a liquefied pure fuel (LNG) cargo to Pakistan LNG Restricted that was scheduled for February has been disrupted as a consequence of an occasion of pressure majeure.

The Italian main has a 15-year deal to produce Pakistan LNG with one cargo a month from 2017 to 2032.

“February LNG supply disruption is past the affordable management of ENI and as a consequence of an occasion of pressure majeure. ENI doesn’t profit in any manner from the state of affairs,” mentioned the corporate in an announcement to Reuters.

“All of the earlier disruptions in LNG supply suffered by ENI have been brought on by the LNG provider who did not fulfill the agreed obligations. Additionally in these circumstances, ENI didn’t take benefit or profit in any manner from these defaults and utilized all contractual provisions to handle such disruptions.”

Pakistan has struggled to acquire spot cargoes of LNG amid elevated international fuel costs, which spiked to report highs final yr following Russia’s invasion of Ukraine.

LNG shipments to Pakistan underneath long-term offers are inadequate to match the nation’s rising gasoline demand.

Pakistan LNG, a authorities subsidiary that procures LNG from the worldwide market, didn’t instantly reply to a request for remark.

Pakistan imported 9 billion cubic metres (bcm) of LNG final yr, in line with Refinitiv knowledge, down practically 20% from 11.2 bcm in 2021.

Reporting by Emily Chow; Modifying by Simon Cameron-Moore

Our Requirements: The Thomson Reuters Belief Ideas.