By Staff Reporter
ISLAMABAD: Pakistan has signed a framework agreement with Azerbaijan for liquefied natural gas (LNG) procurement on flexible terms, as part of its efforts to diversify its energy sources and meet its growing demand.
The deal allows Pakistan to receive one cargo of LNG per month from Azerbaijan, with the option to decline or increase the volume depending on its needs. SOCAR has also offered a credit line of 30 days after the delivery of the cargo.
The agreement has a duration of one year, which can be extended for another year.
“This is a major achievement for Pakistan towards fulfilling its energy needs after importing the Russian crude oil,” Sharif said at the signing ceremony.
The agreement was signed between Pakistan LNG Limited and the State Oil Company of the Azerbaijan Republic (SOCAR) on Monday in Islamabad, in the presence of Prime Minister Shehbaz Sharif.
Sharif also thanked President Ilham Aliyev of Azerbaijan for his role in facilitating the agreement, and said that the two countries have strengthened their cooperation in various fields, including defense, IT and transport.
He announced that an Azeri airline has been given permission to land in Islamabad, Lahore and Karachi, and that an Azeri delegation of horticulture experts is visiting Pakistan to share their expertise.
Pakistan is facing an acute energy crisis, with frequent power outages and gas shortages affecting its economy and people’s lives. The country relies heavily on imported oil and gas to meet its energy needs, which account for about a third of its total imports.
The government has been trying to diversify its energy mix by exploring alternative sources such as renewable energy, coal and nuclear power.
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