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

Spark: spot LNG shipping rates ease this week

Spot charter rates for the global liquefied natural gas (LNG) carrier fleet declined this week as vessel availability increased,...

Pilot LNG, Seapath plan to build $150 million US bunkering facility

Houston-based Pilot LNG is joining forces with Libra Group's maritime unit Seapath to build what they say is the...

US weekly LNG exports down to 21 shipments

US liquefied natural gas (LNG) exports declined in the week ending September 27 compared to the week before, according...

More News Like This

Pakistan launches tender for two spot LNG cargoes

State-owned Pakistan LNG has released a tender inviting firms to submit bids for two spot shipments for delivery in...

Trafigura offers two spot LNG cargoes to Pakistan

State-owned Pakistan LNG has received offers for two spot liquefied natural gas shipments from energy trader Trafigura following a...

No bids in Pakistan LNG’s tender for six shipments

State-owned Pakistan LNG said it had received no offers for its tender seeking bids for a total of six...

Pakistan launches tender for six spot LNG cargoes

State-owned Pakistan LNG has released a tender inviting firms to submit bids for a total of six shipments for...