By Staff Reporter
KARACHI: Pakistan LNG Limited (PLL) has been allowed by Economic Coordination Committee (ECC) of the cabinet to sign a framework agreement with SOCAR Trading, the international arm of Azerbaijan’s state oil company, the finance ministry said on Wednesday.
The ECC, chaired by Finance Minister Ishaq Dar, also instructed the petroleum ministry to estimate Pakistan’s LNG demand three months ahead on a rolling basis.
“The ECC after detailed discussion allowed PLL to execute the proposed framework agreement with SOCAR Trading,” the ministry’s statement said.
Pakistan issued two tenders this week seeking spot LNG cargoes for the first time in nearly a year, and also announced a deal with Azerbaijan to receive one LNG cargo per month at a lower price than the international market.
Pakistan relies on gas for power generation but faces shortages due to low foreign exchange reserves and high global prices. Asian spot LNG prices have eased from record highs of $70/mmBtu in August to below $10 now.
Pakistan LNG, a government subsidiary, has one tender seeking six cargoes for October and December delivery to Port Qasim in Karachi, according to its website.
Petroleum Minister Musadik Malik told a news conference on Tuesday that Azerbaijan would supply a distressed LNG cargo every month to Pakistan and that Pakistan could choose to accept it or not.
The ECC also approved additional funds of Rs404.769 million for six aviation squadrons and Rs734 million for the salaries and expenses of Heavy Electrical Complex (HEC), and directed the Privatization Commission to complete the privatisation process of HEC by June 30.
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