{"id":6022,"date":"2023-06-14T15:31:57","date_gmt":"2023-06-14T15:31:57","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=6022"},"modified":"2023-06-14T15:34:29","modified_gmt":"2023-06-14T15:34:29","slug":"pakistan-approves-lng-purchase-deal-with-azerbaijan","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/6022\/","title":{"rendered":"Pakistan approves LNG purchase deal with Azerbaijan"},"content":{"rendered":"
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Roydad Naft News Agency – Pakistan on Wednesday approved a liquefied natural gas (LNG) purchase agreement framework with Azerbaijan, its finance ministry said.<\/p>\n\n\n\n

Pakistan has not procured any spot cargos of LNG for about a year after global prices spiked following Russia’s invasion of Ukraine.<\/p>\n\n\n\n

The country, which has a population of 220 million, had to impose lengthy power outages because of shortages of gas, which Pakistan uses to fuel many of its power plants.<\/p>\n\n\n\n

An\u00a0acute balance of payments crisis\u00a0meant Pakistan was unable to compete in the high-priced LNG market. The central bank’s foreign reserves dropped so low as to cover barely a month of controlled imports.<\/p>\n\n\n\n

Islamabad, however, earlier this week issued\u00a0tenders to seek two spot LNG cargos.<\/p>\n\n\n\n

Asian spot LNG prices this year have eased from record highs of $70\/mmBtu hit in August, and are now trading below $10.<\/p>\n\n\n\n

The approval for the LNG deal came at a meeting of the Economic Coordination Committee of Pakistan’s finance ministry, which gave the go-ahead for “the framework agreement between Pakistan LNG Limited and State Oil Company of Azerbaijan Republic (SOCAR).”<\/p>\n\n\n\n

The decision comes ahead of Pakistani Prime Minister Shehbaz Sharif’s visit to the central Asian state later on Wednesday.<\/p>\n\n\n\n

“I will hold important talks with Azerbaijani leadership to open up avenues of cooperation in energy, banking, financial services and IT sectors,” Sharif said in a statement.<\/p>\n\n\n\n

“We are committed to stepping up the cooperation with CARs to make Pakistan energy-secure,” he said, referring to the Central Asian Republics.<\/p>\n\n\n\n

Further details of the LNG deal, such as price, contract type, have not been made public.<\/p>\n\n\n\n

Pakistan’s Petroleum Minister Musadik Malik said on Tuesday that Azerbaijan will be supplying one LNG cargo every month at a cheaper price than the market. Azerbaijan’s SOCAR Trading will fulfil the LNG supply.<\/p>\n\n\n\n

He did not disclose when this monthly supply would begin.<\/p>\n

Updated on