Pakistan buys second LNG cargo from Azerbaijan

Pakistan on Wednesday announced the successful procurement of a second LNG cargo from the State Oil Company of the Azerbaijan Republic (SOCAR).

According to the statement, Energy Ministry and Pakistan LNG Ltd (PLL) secured LNG cargo agreement from SOCAR.

The cargo is scheduled for delivery next month.

In July last year, Pakistan had signed a landmark framework agreement with Azerbaijan for LNG procurement on flexible terms.

Pakistan also purchased a liquefied natural gas shipment for January delivery to address fuel deficit this winter.

Pakistan LNG Limited (PLL) has awarded tender to Oman’s OQ Trading for a spot LNG cargo to be delivered in January.

State-run PLL has secured the shipment at a price premium to the spot market due in part to Pakistan’s credit risk, sources said.

Pakistan has struggled to procure spot cargoes of LNG after global prices spiked last year following Russia’s invasion of Ukraine, leaving it to face widespread power outages.

The PLL had earlier invited from international suppliers for the supply of one LNG cargo on a Delivered Ex-Ship (DES) basis at Port Qasim, Karachi.

PLL has been mandated by the government to import and sell natural gas, LNG and re-gasified LNG.

It procures LNG from international markets and enters into onward arrangements for the supply of gas to end users, managing the whole supply chain of LNG.

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