Pakistan signs deal with ENI to divert 32 LNG cargoes to international market over two years

ISLAMABAD: In a rare display of strategic agility, Pakistan LNG Limited (PLL) has inked a deal with Italy’s ENI — one of its long-term LNG suppliers — to divert 32 liquefied natural gas (LNG) cargoes to the international market between 2025 and 2027.

The move, officials of the Petroleum Division say, will not only help defuse dangerously high pressure in the national gas transmission system but also generate around $880-900 million in savings and profits over three years. “So far in 2025, 11 ENI LNG cargoes have been diverted, saving Pakistan $300 million in import costs and generating $45 million in profits.”

Under the deal with ENI, the next 11 cargoes in 2026 are projected to save $230 million in imports, with an additional $45-50 million in diversion profits, bringing the total benefit to around $245-250 million. In 2027, 10 cargoes could yield $290-300 million, resulting in a cumulative gain of approximately $880-900 million over three years.

As of November 4, gas “line pack”—the pressure inside the country’s transmission pipelines —has climbed to 5.21 billion cubic feet (bcf), breaching the 5 bcf danger mark. Fearing a potential rupture that could paralyse industrial operations and household supplies, authorities have opted to offload surplus LNG instead of feeding it into the system.

“It’s a win-win — we’re stabilising the network and monetising our excess supply,” a senior Petroleum Division official told this scribe. “Authorities are still in discussions with QatarEnergy to divert 24 LNG cargoes to the international market under the Net Proceed Differential (NPD) clause. Under this arrangement, if a Qatar cargo is sold above the contract price, all profits go to Qatar, while any losses — potentially up to $10 million per cargo, including operational costs —must be absorbed by Pakistan.” In contrast, the PLL-ENI agreement has a more balanced structure. The management negotiated terms under which both profits and losses from diverted cargoes are shared, reflecting PLL’s commercial acumen and contractual flexibility.