Pakistan approves LNG purchase deal with Azerbaijan – Reuters

ISLAMABAD, June 14 (Reuters) – Pakistan on Wednesday approved a liquefied natural gas (LNG) purchase agreement framework with Azerbaijan, its finance ministry said.
Pakistan has not procured any spot cargos of LNG for about a year after global prices spiked following Russia's invasion of Ukraine.
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.
An acute balance of payments crisis meant 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.
Islamabad, however, earlier this week issued tenders to seek two spot LNG cargos.
Asian spot LNG prices this year have eased from record highs of $70/mmBtu hit in August, and are now trading below $10.
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)."
The decision comes ahead of Pakistani Prime Minister Shehbaz Sharif's visit to the central Asian state later on Wednesday.
"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.
"We are committed to stepping up the cooperation with CARs to make Pakistan energy-secure," he said, referring to the Central Asian Republics.
Further details of the LNG deal, such as price, contract type, have not been made public.
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.
He did not disclose when this monthly supply would begin.
Our Standards: The Thomson Reuters Trust Principles.
Thomson Reuters
Shahzad is an accomplished media professional, with over two decades of experience. He primarily reports out of Pakistan, Afghanistan regions, with a great interest and an extensive knowledge of Asia. He also reports on politics, economy, finance, business, commodities, Islamist militancy, human rights
Consumers, food companies, retailers and restaurants need to decide whether to fight back or find alternatives to one of the world's most common artificial sweeteners, as a leading global health body prepares to declare it a possible carcinogen.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2023 Reuters. All rights reserved


Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top