Pakistan has taken decisive steps to address its oversupply of liquefied natural gas (LNG) by canceling 21 cargoes under its long-term contract with Italy’s Eni. The move, initiated at the request of gas distributor SNGPL, reflects a broader strategy to reduce excess imports that have overwhelmed the country’s gas network. According to an official document from Pakistan LNG Ltd (PLL) dated October 22, 11 cargoes scheduled for 2026 and 10 for 2027 will be canceled, with only peak winter shipments retained. Eni agreed to the cancellations under the contract’s flexibility provisions, allowing it to potentially sell cargoes in the more lucrative spot market. Eni declined to comment, while PLL, SNGPL, and Pakistan’s petroleum ministry remained silent on the matter. Simultaneously, Pakistan is in talks with Qatar to renegotiate gas supplies, exploring options such as deferring cargoes or reselling them under existing agreements. QatarEnergy has yet to respond to inquiries. The surplus stems from declining LNG demand, driven by increased renewable energy generation and reduced industrial consumption. Pakistan’s long-term contracts with Qatar and Eni cover approximately 120 cargoes annually, but imports have plummeted this year due to higher solar and hydropower output. The oversupply has forced Pakistan to sell gas at steep discounts, curb local production, and consider offshore storage or reselling excess cargoes. Eni’s last delivery to Pakistan was on January 3, and no further cargoes are expected in 2025.