ISLAMABAD: Pakistan on Wednesday declared the successful acquisition of its second liquefied natural gas (LNG) shipment from the State Oil Company of the Azerbaijan Republic (SOCAR).
The Energy Ministry and Pakistan LNG Ltd (PLL) collaborated to secure the LNG cargo agreement with SOCAR, and the scheduled delivery is set for the upcoming month.
Notably, in July of the previous year, Pakistan entered into a significant framework agreement with Azerbaijan, establishing flexible terms for LNG procurement. In response to the winter fuel deficit, Pakistan had previously procured a LNG shipment for delivery in January.
In a recent development, PLL, a state-run entity, has awarded a tender to Oman's OQ Trading for a spot LNG cargo to be delivered in January. The agreement reportedly involves a price premium compared to the spot market, a measure influenced in part by Pakistan's credit risk, as indicated by sources.
Pakistan's challenges in obtaining spot LNG cargoes arose after a surge in global prices following Russia's invasion of Ukraine last year, leading to widespread power outages. PLL, following an invitation to international suppliers for the supply of an LNG cargo on a Delivered Ex-Ship (DES) basis at Port Qasim, Karachi, has been actively managing the entire LNG supply chain.
Mandated by the government, PLL handles the import and sale of natural gas, LNG, and re-gasified LNG, playing a crucial role in securing the country's energy needs.
