KARACHI – Pakistan announced the successful acquisition of its second LNG cargo from the State Oil Company of the Azerbaijan Republic (SOCAR). The Energy Ministry and Pakistan LNG Ltd (PLL) finalised the LNG cargo agreement with SOCAR, with the delivery scheduled for the upcoming month.
Last July, Pakistan entered into a significant framework agreement with Azerbaijan for flexible LNG procurement terms. In addressing the winter fuel deficit, Pakistan had previously secured a liquefied natural gas shipment for January delivery.
In its efforts to cope with the challenges of fluctuating global prices, Pakistan LNG Limited (PLL) awarded a tender to Oman’s OQ Trading for a spot LNG cargo to be delivered in January. The state-run PLL, mindful of Pakistan’s credit risk, secured the shipment at a premium price compared to the spot market rates.
Facing difficulties in procuring spot LNG cargoes due to last year’s surge in global prices following geopolitical events, including Russia’s invasion of Ukraine, Pakistan experienced widespread power outages. In response, PLL had invited international suppliers to bid for the supply of an LNG cargo on a Delivered Ex-Ship (DES) basis at Port Qasim, Karachi.
Mandated by the government, PLL plays a pivotal role in importing and selling natural gas, LNG, and re-gasified LNG. The organization manages the entire supply chain of LNG, procuring from international markets and establishing onward arrangements for the supply of gas to end users.
