ISLAMABAD: Pakistan has succeeded in securing a second Liquefied Natural Gas (LNG) cargo from the State Oil Company of the Azerbaijan Republic (SOCAR) for delivery in February amid Qatar’s prime minister’s warning that LNG shipments may be affected by tensions in the Red Sea.
The cargo is scheduled for delivery in February 2024. The first cargo was delivered in December 2023.
“Ministry of Energy (Petroleum Division) and Pakistan LNG Limited (PLL) are pleased to announce the successful procurement of a second LNG cargo from the State Oil Company of the Azerbaijan Republic (SOCAR) under the Government-to-Government Framework Agreement between PLL and SOCAR,” the energy ministry said in a statement.
Pakistan LNG Limited (PLL) and SOCAR signed a landmark LNG purchase agreement framework in July last year, a significant milestone in bilateral energy cooperation between the two nations.
The framework agreement stipulates that SOCAR may offer one LNG cargo per month to PLL, while PLL’s acceptance of the offer is subject to the demand for LNG in Pakistan and commercial considerations, ensuring a reliable and consistent supply of LNG to meet the country’s growing energy demands.
Pakistan meets more than half of its LNG requirement through long-term import contracts with Qatar while the gas deficit is met through spot cargo purchases. Pakistan is importing eight LNG cargos from Qatar each month.
Sheikh Mohammed bin Abdulrahman Al Thani reportedly told the World Economic Forum in Davos, “LNG is as any other merchant shipments. They will be affected by that,” referring to the increasing exchanges with Yemen’s Houthi rebels.
Copyright Business Recorder, 2024
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