Pakistan has cancelled a major liquefied natural gas order that was planned under a long term agreement with an Italian supplier. The decision comes as the country faces a shift in its energy needs. Demand for imported gas has decreased while the use of solar and hydropower has gradually increased in different parts of the country. This change has created a surplus of LNG that the government does not want to purchase unnecessarily.
The cancelled order included shipments planned for the years 2026 and 2027. Only a few deliveries for peak winter months will still be taken because gas demand generally rises during colder weather. The aim is to avoid paying for LNG that may not be used and to prevent storage and supply complications.
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In recent years Pakistan entered long term contracts to secure stable gas supply for homes and industries. However the situation has changed. Several industries reduced gas usage due to higher costs and power production has increasingly shifted toward renewable sources. As a result the country ended up with more LNG than it needed.
By cancelling the upcoming shipments Pakistan hopes to reduce financial pressure and avoid losses that occur when imported gas remains unused. This decision also reflects that the country is trying to balance energy import costs while encouraging local and renewable options.
