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 shuts key motorway routes as dense fog envelopes parts of Punjab

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Pakistan shuts key motorway routes as dense fog envelopes parts of Punjab

  • Pakistan shuts Lahore to Sambrial, Thokar Niaz Baig to Kot Momin areas along motorway due to reduce visibility
  • Motorway police advise citizens to avoid overspeeding, lane violations and unnecessary traveling amid smog conditions

ISLAMABAD: Pakistani authorities closed key routes on the motorway on Saturday night as thick fog enveloped parts of the eastern Punjab province, the motorway police said in a statement, to save lives and reduce the chance of accidents due to reduced visibility. 

Punjab cities face worsening smog each winter, driven by crop burning, vehicle emissions and industrial pollution that threatens public health and daily life. The smog season typically begins in late October, peaks between November and January and can persist through February.

As per a statement released by the National Highways and Motorway Police (NHMP), the M-2 motorway was closed from Thokar Niaz Baig to Kot Momin, the M-3 motorway section was closed from Faizpur to Darkhana and the M-4 area from Pindi Bhattiyan to Abdul Hakeem was also closed. The M-11 route was also closed from the provincial capital Lahore to Sambrial. 

“The closure of motorways is aimed at ensuring the safety of life and property of the public,” NHMP’s central region spokesperson said in a statement. 

He warned that lane violations during the prevalent smog can cause accidents, adding that visibility on the National Highway ranges from zero to 100 meters.

“Citizens are advised to prefer traveling during daytime hours,” he said. “Safe traveling time is from 10:00 am to 6:00 pm.”

The police spokesperson urged citizens to avoid overspeeding and advised them to keep a safe distance from the vehicle ahead while driving. 

The development takes place as two of Pakistan’s largest cities, Karachi and Lahore, were ranked among the top 10 most polluted cities in the world by the Swiss air monitoring agency IQAir on Sunday morning. 

Karachi was ranked as the fourth-most polluted city in the world with an air quality index of 215 (very unhealthy) while Lahore was placed at number five with an AQI of 199 (unhealthy).