Pakistan has transformed an oversupply of liquefied natural gas (LNG) into a financial triumph, securing an estimated USD 880 million in combined savings and profits through a three-year deal with Italian energy major Eni S.p.A.Under the arrangement, Pakistan LNG Limited (PLL) will divert 32 LNG cargoes from the domestic grid to the international market between 2025 and 2027, capitalizing on lower local demand and higher global spot prices.  It has been reported that the two transmission companies – Sui Northern Pipelines Ltd and Sui Southern Pipeline Ltd – had been reporting that Pakistan’s gas transmission network had been under pressure, both literally and economically. With line-pack volumes often exceeding 5.2 billion cubic feet (bcf) – a dangerous level for the system – authorities faced the dual challenge of managing excess regasified LNG (RLNG) or facing penalties for violating contractual terms.Rather than allowing surplus gas to strain infrastructure, Pakistan was able to negotiate a mechanism within its long-term supply contract with Eni for diversion of cargoes outside Pakistan on mutually acceptable terms, leveraging on global market dynamics. The deal’s “mutual diversion” clause enabled both parties to agree on redirecting cargoes abroad and sharing the financial returns from the re-sale.The negotiations with Eni expertly handled by the leadership at Pakistan LNG Limited (PLL) under the strategic guidance of the Federal Minister for Petroleum Ali Pervaiz Malik and Secretary Momin Agha have locked diversion of ships, according to the schedule. In the current year, 11 Eni cargoes are expected to be diverted and save USD 300 million in import costs and generate USD 45 million in direct profits. In the year 2026, another 11 cargoes will deliver around USD 230 million in savings and USD 45–50 million in profits – totalling roughly USD 245–250 million. In 2027, the final 10 cargoes are forecast to add another USD 290–300 million in financial benefit.Over the full term, Pakistan stands to gain USD 880–900 million, a rare fiscal boost in an energy sector often beset by price volatility and circular debt. (ICE ISLAMABAD)

Fonte notizia: business recorder