SOCAR, Pakistan's PSO to establish joint trading company in Singapore for LNG purchases

BAKU. Feb 17 (Interfax) - The State Oil Company of the Azerbaijani Republic (SOCAR) and Pakistan's state-owned oil company Pakistan State Oil Limited (PSO) are creating a joint trading company in Singapore, the Pakistani newspaper Profit said.

"On February 14, the Economic Coordination Committee (ECC) of Pakistan's cabinet approved the creation of an international joint trading company in Singapore as a joint venture between PSO and SOCAR. The ECC instructed the Pakistani Petroleum Ministry to conduct a detailed review of the investment process, particularly regarding contributions to the share capital. The ministry has also been directed to present a timeline for the operational activities of the joint company," it said.

PSO plans to deposit $0.5 million into a Singaporean bank account as part of the mandatory requirement for registering the company, it said.

"Government officials confirmed that the trading company in Singapore is being established in partnership with SOCAR to purchase liquefied natural gas (LNG) on the spot market. Given SOCAR's extensive experience in the LNG sector and its position in international markets, PSO aims to leverage the Azerbaijani company's market connections to expand its trading capabilities," it said.

The goal of the strategic partnership is to strengthen Pakistan's energy security through reliable LNG supplies via an internationally recognized trading hub, it said.

As reported, Pakistan State Oil and SOCAR signed an LNG supply agreement for Pakistan in December 2024. The terms of the agreement were not disclosed. PSO became the second Pakistani company after Pakistan LNG Limited (PLL) to import liquefied natural gas from SOCAR.