Pakistan on Monday sued a foreign company in the London Court of International Arbitration for failing to deliver a liquefied natural gas (LNG) cargo to the country under a deal, sources said.

The court is likely to conduct proceedings on Pakistan’s petition in the coming month (January) in London, they added.

Sources said that Pakistan signed a 5-year deal with the company under which the company quoted the LNG price at 11.62% of a barrel of crude oil (Brent) for short-term supply for five years.

Pakistan LNG had a five-year contract with Gunvor at 11.6247% Brent slope that ended in July 2022.

According to sources, Pakistan had signed deals with commodity trader Gunvor and Italian energy company Eni for the supply of 10 LNG cargos. Both of the companies failed to deliver the cargo in the agreed time and supplied the commodity to other countries at higher prices.

It is pertinent to mention that Eni in January said that the delivery of LNG cargo to Pakistan LNG Limited that was scheduled for February has been disrupted due to an event of force majeure, Reuters reported.

The Italian company has a 15-year deal to supply Pakistan LNG with one cargo a month from 2017 to 2032. The LNG was priced at 12.14% of Brent with the contract expiring in November 2032.

“February LNG delivery disruption is beyond the reasonable control of ENI and due to an event of force majeure. ENI does not benefit in any way from the situation,” said the company in a statement to Reuters.

Sources said that the country is in talks with the other company to resumed the supply of the cargo and Pakistan has not filed a petition against it.