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 Navy launches fourth Hangor-class submarine ‘Ghazi’ in China 

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Pakistan Navy launches fourth Hangor-class submarine ‘Ghazi’ in China 

  • As per Islamabad’s agreement with Beijing, four of eight submarines will be built in China and the rest in Pakistan
  • Navy says all four submarines under construction in China undergoing sea trials, in final stages of being handed over

ISLAMABAD: The Pakistan Navy announced on Wednesday it has launched the fourth Hangor-class submarine named “Ghazi” at a Chinese shipyard in Wuhan, saying the development will help maintain peace in the region.

Pakistan’s government signed an agreement with China for the acquisition of eight Hangor-class submarines, the navy said in its press release. Under the contract, four submarines are being built in China while the remaining four will be constructed in Pakistan by the Karachi Shipyard and Engineering Works Ltd. company.

“With the launching of GHAZI, Pakistan Navy has achieved another significant milestone where all four submarines under construction in China are now undergoing rigorous sea trials and are in the final stages of being handed over to Pakistan,” the navy said. 

It further said that these submarines will be fitted with advanced weapons and sensors capable of engaging targets at standoff ranges. 

“Hangor-class submarines will be pivotal in maintaining peace and stability in the region,” the navy added. 

Pakistan’s agreement with China is set to strengthen its naval defenses, especially as ties with arch-rival India remain tense. 

India and Pakistan were involved in a four-day military confrontation in May this year before Washington intervened and brokered a ceasefire. Four days of confrontation saw the two countries pound each other with fighter jets, exchange artillery fire, missiles and drone strikes before peace prevailed. 

Pakistan’s air force used Chinese-made J-10 fighter jets in May to shoot down an Indian Air Force Rafale aircraft, made by France.

The altercation between the nuclear-armed neighbors surprised many in the military community and raised questions over the superiority of Western hardware over Chinese alternatives.

Islamabad has long been Beijing’s top arms customer, and over the 2020-2024 period bought over 60 percent of China’s weapons exports, according to data from the Stockholm International Peace Research Institute.