Islamabad March 31 2022: Gunvor has issued a statement saying it has not defaulted on its obligations to supply LNG to Pakistan, following claims by government officials that the commodity trader had allegedly backed out of supplying cargoes that were committed under contracts.
“Any claims that Gunvor has defaulted on its obligations are false. Gunvor complies with its contractual obligations,” a company spokesperson told S&P Global Commodity Insights late March 29.
“The provisions of the contract are confidential and expressly covered by a confidentiality provision, and the company will deal with any allegations made in the appropriate forum in accordance with the contract,” the spokesperson added.
Officials in Islamabad said earlier in the week that Pakistan’s Ministry of Energy received notices from Gunvor stating that the trader would not be able to ship four LNG cargoes scheduled for delivery on April 15, May 14, June 4 and June 9 as per contracts, S&P Global had reported on March 28.
The South Asian country has since been forced to issue spot tenders to purchase LNG on the spot market at record-high prices and grapple with energy security concerns, officials at the energy ministry told S&P Global.
Pakistan also received separate notices from Italy’s Eni stating its inability to deliver a cargo scheduled for March arrival.
“Eni suffered a disruption in the LNG supply chain, in Pakistan, originated by a third-party supplier that defaulted in its supply obligations for unspecified reasons,” an Eni spokesperson said March 29. “Eni is evaluating all contractual remedies, including legal actions, to preserve its rights.”
The identity of the third-party supplier is not known.
