SOCAR agreement on supplying LNG to Pakistan extended another three years

BAKU. Feb 21 (Interfax) - Pakistan's Economic Coordination Committee (ECC) has approved extending the LNG supply agreement between Pakistan LNG Limited (PLL) and SOCAR Trading, a division of the State Oil Company of the Azerbaijan Republic (SOCAR).

"The ECC at a meeting on February 20 approved extending the LNG framework agreement between Pakistan LNG Limited and SOCAR Trading for another three years based on the Energy Ministry's summary," Pakistani media reported, citing the ECC.

The agreement was initially signed in 2023, and it permits PLL to purchase one consignment of LNG per month from the Azerbaijani trader as needed without any financial or take-or-pay commitments.

"The extension is in line with Pakistan's strategy for the flexible procurement of LNG based on seasonal demand, thereby providing cost-effective energy solutions," according to the report.

As reported, SOCAR and PLL signed a framework agreement in July 2023 to supply LNG to Pakistan for one year with the option to extend the agreement for another year. The agreement indicates that Pakistan may buy LNG from Azerbaijan each month at a preferential price.