By SKM
April 14, 2025
ISLAMABAD: The government has managed to divert fourth LNG cargo from ENI – an Italian company to the international market which was due in the next month of May mainly because of the slump in gas consumption in Pakistan and the endeavours are also underway for the diversion of another cargo due in the month of June, a senior official at the Energy Ministry told The News.
So far, Pakistan LNG Limited (PLL) earlier diverted three LNG cargoes which were due in February, March and April each from ENI. “We are also working to divert the LNG cargo which is due in June.”
“This is being done because of the demand that SNGPL placed in its letter written on January 21, 2025 to the federal government seeking to divert 11-term LNG cargoes to be imported in 11 months of 2025 from ENI — to the international market as the Power Division has refused to increase the use of RLNG for power generation even during June, July and August—the peak summer season.”
PLL is in term-contract with ENI for 15 years under which ENI provides one LNG cargo per month at the cost of 12.14 percent of the Brent.
The refusal of the power division prompted top mandarins of the petroleum division to keep diverting one LNG cargo from ENI to the international market. Qatar has already deferred the 5 LNG cargoes to 2026 which were to arrive in 2025 under the flexible clause of the 15 year contract. Pakistan LNG Limited (PLL) and ENI in 2017 signed a 15-year contract under which ENI is bound to provide LNG cargo per month at 12.14 per cent of Brent.
Sui Northern wrote a letter on January 21, 2025 to the Managing Director of Pakistan LNG Limited (PLL) and mentioned that the matter of surplus RLNG was taken up with the Power Division and was requested to review demand of RLNG for the upwards revision during June, July and August 2025. The letter says, NPCC (National Power Control Cell) responded on January 21, 2025 saying that the demand of the power sector for June, July and August shall remain unchanged in view of the declining electricity demand. So Sui Northern requested PLL MD to take up the matter with ENI for the diversion of LNG cargoes for the remaining 11 months of 2025.
The gas consumption has gone down by 150mmcf per month. It is because of that 18 LNG cargoes have become additional. However, power sector has started using RLNG for power generation as the hydrogenation is very low mainly because of worsening water situation in dams—Tarbela and Mangla. More importantly, the 969 MW Neelum-Jhelum is also dysfunctional for a long time because of the collapse of its one tunnel.
However, PLL since February 2025 is not getting the margins on RLNG as it is diverting cargo after consultations with ENI to the international market every month. Sources said that PLL in the last year earned Rs26 billion. The employees of PLL stand at 29 in numbers including drivers and tea boys. The official said that the diversion of cargo every month is helping to reduce the foreign exchange outflows. Ends
