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.


China’s mediation eases fighting between Pakistan, Afghanistan — sources

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China’s mediation eases fighting between Pakistan, Afghanistan — sources

  • China’s envoy shuttles between Pakistan and Afghanistan to mediate in conflict
  • Gulf countries that mediated in the past embroiled in Middle East conflict

ISLAMABAD/BEIJING: Chinese mediation efforts, including a message from ​President Xi Jinping, have helped ease the worst fighting between Pakistan and Afghanistan since the Taliban returned to power in 2021, three Pakistani government officials said.

The officials said a meeting between the Chinese ambassador to Pakistan, Jiang Zaidong, and Prime Minister Shehbaz Sharif late last month included a message from Xi to cease hostilities.

Neither side has reported any Pakistani air strikes on Afghanistan in recent days and ground fighting along the 2,600-km (1,600-mile) border has tapered off, although daily clashes continue to be reported.

China has said it is ‌in contact ‌with both countries about ending hostilities but Mosharraf Zaidi, a ​spokesman ‌for ⁠Sharif who ​has previously ⁠said there would not be any talks with the Taliban, did not respond to questions about Beijing’s efforts.

Pakistani security officials have said the military campaign will continue until desired goals were achieved, which was to prevent militant attacks in Pakistan launched from Afghan soil.

Pakistan’s foreign ministry and military did not respond to Reuters requests for comment.

Islamabad launched air strikes on Afghanistan on February 26, saying the Taliban were providing a safe haven to ⁠militants carrying out attacks in Pakistan. Kabul denies the charge ‌and says militancy in Pakistan is an internal problem.

The ‌Chinese efforts came as Qatar, Saudi Arabia and ​Turkiye, who hosted talks between Pakistan and ‌Afghanistan during previous clashes in October, have been embroiled in the war in the Middle ‌East following the US and Israeli strikes on Iran.

“China’s Special Envoy for Afghanistan Affairs is currently shuttling between the two countries to mediate, while Chinese embassies in both nations maintain close communication with the respective parties,” the Chinese foreign ministry told Reuters in an email.

“The most urgent task ‌is to prevent the fighting from expanding and for the two countries to return to the negotiating table as soon as possible.”

The ⁠foreign ministry added ⁠that Foreign Minister Wang Yi held telephone talks with Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar on Tuesday to discuss the conflict.

China’s ambassador to Kabul, Zhao Xing, and the special envoy Yue Xiaoyong met Afghanistan’s acting Foreign Minister Amir Khan Muttaqi this week, the Afghan foreign ministry said in a statement.

Afghanistan and Pakistan have said they inflicted heavy damage on the other in the conflict and killed hundreds of opposition troops, without providing evidence. Reuters has not been able to verify the reports.

Beijing, a longtime Pakistani ally, has invested heavily in mines and minerals in both nations.

The investments include over $65 billion in road, rail and other development projects in Pakistan, part ​of Beijing’s Belt and Road Initiative to ​expand land and sea trade routes to Europe and Africa.