ENI unable to deliver Feb LNG cargo to Pakistan, declares force majeure

This aerial view taken on October 20, 2009, shows the Adriatic LNG Terminal, offshore Levante, about 15 kilometers off the Veneto coastline, the day of its official inauguration. (AFP/File)
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Updated 26 January 2023
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ENI unable to deliver Feb LNG cargo to Pakistan, declares force majeure

  • Pakistan has struggled to procure spot cargoes amid high global gas prices after Russia’s invasion of Ukraine
  • LNG shipments to Pakistan under long-term deals are insufficient to match the country’s rising fuel demand

KUALA LUMPUR: Eni (ENI.MI) 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 meters (bcm) of LNG last year, according to Refinitiv data, down nearly 20 percent from 11.2 bcm in 2021.


Pakistan party calls Sindh resolution against new provinces ‘unconstitutional’

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Pakistan party calls Sindh resolution against new provinces ‘unconstitutional’

  • The development follows calls to separate Karachi from Sindh amid governance concerns intensified by a deadly mall fire last month
  • Muttahida Qaumi Movement-Pakistan calls for a referendum in urban areas of Sindh for the establishment of a new administrative unit

ISLAMABAD: The Muttahida Qaumi Movement-Pakistan (MQM-P) political party on Sunday criticized the Sindh provincial government for adopting a resolution in the provincial assembly against the creation of new provinces, describing it as “illegal, unconstitutional.”

The resolution was adopted on Saturday after fresh demands by the MQM-P and other voices to grant Karachi a provincial or federal status following governance challenges highlighted by a deadly mall fire earlier this year that killed 80 people.

Karachi, Pakistan’s largest city that is home to more than 20 million, is the country’s main commercial hub and contributes a significant share to the national economy.

Speaking at a press conference, MQM-P’s Khalid Maqbool Siddiqui said the Constitution of Pakistan provided procedure for establishing new provinces, but a province had “carried itself as if it were a separate country,” referring to Saturday’s resolution.

“Anything in contrast with the constitution cannot be adopted. This is illegal, unconstitutional, undemocratic,” he said, calling for a referendum in urban areas of Sindh for the establishment of a new administrative unit in the region.

Sindh Chief Minister Syed Murad Ali Shah had tabled the resolution in the assembly on Saturday, condemning what he described as “divisive statements” about breaking up Sindh or detaching Karachi.

“The province that played a foundational role in the creation of Pakistan cannot allow the fragmentation of its own historic homeland,” Shah told lawmakers, citing Article 239 of Pakistan’s 1973 Constitution, which requires the consent of not less than two-thirds of a provincial assembly to alter provincial boundaries.

“If any such move is attempted, it is this Assembly — by a two-thirds majority — that will decide,” he said.

The resolution reaffirmed that Karachi would “forever remain” an integral part of Sindh and directed the provincial government to forward the motion to the president, prime minister and parliamentary leadership for record.

Calls to alter Karachi’s status have periodically surfaced amid longstanding complaints over governance, infrastructure and administrative control in the megacity, though no formal proposal to redraw provincial boundaries has been introduced at the federal level.

Taha Ahmed Khan, a senior MQM-P member, acknowledged that his party had “presented its demand openly on television channels with clear and logical arguments” to separate Karachi from Sindh.

“It is a purely constitutional debate,” he told Arab News on Saturday. “We are aware that the Pakistan Peoples Party, which rules the province, holds a two-thirds majority and that a new province cannot be created at this stage. But that does not mean new provinces can never be formed.”