By SKM
April 23, 2025
ISLAMABAD: Pakistan has also diverted its 5th LNG cargo to the international market which was due to arrive in June.
Pakistan LNG Limited (PLL) earlier diverted 4 LNG cargoes which were due in February, March, April and May 2025 each from ENI—an Italian company under which PLL is bound to import one LNG cargo per month under the 15-year long-term agreement. Under the agreement, ENI provides PLL an LNG cargo a month at 12.14 percent of the Brent. The
“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,” a senior official of Ministry of Energy told Exclusivewaves.com.pk.
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. The government has already deferred the import of 5 LNG cargoes from Qatar to 2026 which were to arrive in 2025.
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.
Pakistan is currently importing 9 LNG cargoes from Qatar per month (5 cargoes under 13.37% of the Brent under the 15-year agreement and 4 under the 10-year contract at 10.2 percent of the Brent). As of April 22, 2025, data says that the line pack stands at 4.340 trillion cubic feet which is manageable, but when it crosses the figure of 5 trillion cubic feet, the whole national gas network becomes vulnerable. However, the power sector has started using RLNG as a fuel for power generation. The Power sector has increased the intake of RLNG up to 610 mmcf, as the hydro generation 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. Ends
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