Pakistan has agreed to purchase liquefied natural gas (LNG) directly from Azerbaijan’s state-owned company, SOCAR, through a government-to-government agreement, in a bid to alleviate the financial burden of LNG purchases.
Under the agreement, Pakistan will purchase one LNG cargo per month from Azerbaijan. SOCAR has reportedly committed to sell LNG to Pakistan at a rate 30% lower than prevailing market prices.
The imminent agreement has already been approved by Prime Minister Shehbaz Sharif and is expected to be finalized by the Economic Coordination Committee (ECC) after taking the necessary procedural steps.
Energy initiatives
Separately, Minister of State for Petroleum Musadik Malik said that Azerbaijan will supply an LNG cargo every month to Pakistan at a “cheaper price”. The minister did not share details on the supply deal. He however did hint that it will “start soon”.
The Minister said the government has also held talks with Turkmenistan for import of gas and has invited European countries as well to invest in Pakistan’s LNG Sector. The current government has also commenced discussions with the United States to promote green energy initiatives, said Musadik Malik.
About the import of oil from Russia, he emphasized that the benefits of importing one hundred thousand tonnes of crude oil from Moscow will be soon passed on to the general public. The objective is to gradually transition one-third of Pakistan’s total oil consumption to Russian oil.
He further said that circular debt vis-a-vis gas has been reduced to zero due to prudent policies of the incumbent government.
PM Shehbaz to visit Azerbaijan this week
Meanwhile, Prime Minister Muhammad Shehbaz Sharif is set to visit Azerbaijan on June 14 and 15 at the invitation of President Ilham Aliyev.
The visit aims to strengthen cooperation in key areas such as trade, investment, and energy. Discussions will cover regional and global issues of mutual concern, along with cooperation in multilateral forums.
The visit underscores the deep-rooted friendship and shared values between Pakistan and Azerbaijan, contributing to enhanced bilateral cooperation for the benefit of both nations.
Pakistan receives first cargo of discounted crude oil from Russia
Earlier on Monday Pakistan received the first shipment of 45,000 metric tons of discounted crude oil from Russia. The cargo was being unloaded in the port city of Karachi on June 11. Pakistan paid for the Russian crude oil in Chinese currency (yuan). The total purchase comprises 100,000 tons of discounted crude oil.