Pakistan inks LNG deal with Azerbaijan’s Socar

State-owned Pakistan LNG has signed a deal to buy liquefied natural gas from Azerbaijan’s Socar.

The framework deal was signed in Lahore, Pakistan on Monday.

Pakistan’s Prime Minister Shehbaz Sharif said after the signing ceremony that the agreement is one for year but it can be extended for another year.

According to several media reports in Pakistan, Azerbaijan will offer one shipment of LNG per month as part of the deal, and it will be up to Pakistan to accept or reject the cargo.

Sharif said that there will be no financial consequences if Pakistan refuses to accept the LNG cargo, the reports said.

Pakistan LNG said last week that it received two offers for spot cargoes with delivery in January 2024 from commodity trader Trafigura.

Trafigura offered a price of $23.4711/MMBtu for the January 3-4 delivery and $22.4722/MMBtu for the February 23-24 delivery, the firm said.

This Trafigura offer is the first bid for spot LNG cargoes Pakistan received for its tenders in about a year as Europe took most of the available spot cargoes last year.

The firm also issued a tender for six deliveries in October and December, but it received no offers for this tender.

Pakistan gets most of its supplies under long-term contracts from Qatar and on the spot market to fuel its power plants, however, last year prices surged and Europe took most of the spot supplies.

Spot prices dropped considerably this year, prompting Pakistan and other Asian countries to return to buying spot LNG.

Pakistan currently imports LNG via the FSRU BW Integrity which serves Pakistan GasPort’s terminal in Port Qasim, Karachi, and the Energo Elengy facility, served by the FSRU Exquisite.

- Advertisements -

Most Popular

Adnoc picks South Korean yards to build six LNG carriers

UAE’s energy giant Adnoc has selected two South Korean shipbuilders to build six liquefied natural gas (LNG) carriers following...

Golar says progress made on new FLNG deal

Floating LNG player Golar LNG is working to sign definitive agreements for an up to 20-year FLNG deployment. In February,...

Aethon to buy Tellurian’s upstream assets for $260 million

Dallas-based private investment firm Aethon Energy Management has agreed to buy Tellurian’s integrated upstream assets for $260 million. The...

More News Like This

Gunvor, Pakistan settle LNG supply dispute

Geneva-based energy trader Gunvor has resolved a dispute with state-owned Pakistan LNG over issues related to contracted LNG supplies. "Gunvor...

OQ Trading submits lowest bid in Pakistan LNG tender

Oman’s state-owned firm OQ Trading has submitted the lowest bid in a tender to supply Pakistan with one spot...

Pakistan launches tender for one spot LNG cargo

State-owned Pakistan LNG has released a tender inviting firms to submit bids for one spot LNG shipment for delivery...

Trafigura, Vitol offer spot LNG cargoes to Pakistan

State-owned Pakistan LNG has received offers for spot liquefied natural gas shipments from traders Trafigura and Vitol following a...