KARACHI: Pakistan has secured a second Liquified Natural Gas (LNG) cargo from the State Oil Company of the Azerbaijan Republic (SOCAR) for delivery in February, the Pakistani energy ministry announced on Wednesday.
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.
“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 statement.
The cargo is scheduled for delivery in February 2024. The first cargo was delivered in December 2023.
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 requires 4.1 billion cubic feet per day(bcfd) of gas, with winter demand peaking to around 4.5 bcfd against local production of 3.22 bcfd. The shortfall is bridged through LNG imports.
Pakistan meets more than half of its LNG requirement through long-term import contracts while the gap is met through spot cargo purchases. Pakistan has long-term agreements with global energy trader Gunvor and Italy’s ENI for the supply of one LNG cargo every month.
The south Asian nation imported $6.4 billion worth of petroleum products including $2 billion worth of LNG during the July-November period of the current fiscal year (FY24), according to data from the Pakistan Bureau of Statistics.
