Thursday, November 30, 2023

Pakistan Signs Deal with Azerbaijan for LNG Supply at ‘Cheaper Price’

In a recent development, Pakistan has signed a deal with Azerbaijan to import liquefied natural gas (LNG) at a lower price. This agreement aims to meet Pakistan’s increasing energy demands and overcome foreign exchange limitations. As a result, Pakistan has issued two requests for spot LNG shipments after almost a year of inactivity. Unfortunately, this pause in LNG procurement has caused power outages in the country.

However, there is good news this year as Asian spot LNG prices have significantly dropped, creating a favorable opportunity for Pakistan to secure the required LNG. To capitalize on this situation, Pakistan LNG, a government subsidiary, has initiated a tender to acquire six LNG cargoes. These cargoes are expected to be delivered to Port Qasim in Karachi during October and December. The tender will remain open for submissions until June 20.

By seeking spot LNG cargoes through this tender, Pakistan aims to address its energy needs and mitigate the impact of power outages. The reduced LNG prices present a favorable window for procurement, which the country hopes to take advantage of to ensure a stable energy supply in the future.

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