Azerbaijan, Pakistan agree to increase cooperation in oil and LNG supplies
BAKU. Feb 24 (Interfax) - Pakistan and Azerbaijan have signed a number of documents to increase cooperation in oil and liquefied natural gas supplies.
The documents were exchanged on Monday during the official visit by Pakistani Prime Minister Muhammad Shehbaz to Azerbaijan, the Azerbaijani president's press service said.
The State Oil Company of the Azerbaijani Republic (SOCAR) signed a memorandum of understanding with the Frontier Works Organisation (FWO) and Pakistan State Oil Company Limited (PSO). Pakistani media said the document envisaged cooperation on the White Oil Machike-Thallian-Tarujabba oil pipeline, which will connect the Pakistani port of Qasim with the Pak-Arab oil refinery in Qasba Gujrat, Multan District, Punjab.
The documents also include a memorandum of understanding between SOCAR and Pakistan Refinery Limited (PRL) and PSO, an appendix to the framework agreement on the sale and purchase of liquefied natural gas between SOCAR Trading SA and Pakistan LNG Limited, a memorandum of understanding between SOCAR Trading SA and Pakistan State Oil Company Limited, as well as a long-term agreement on the sale and purchase of petroleum products between SOCAR Trading SA and Pakistan State Oil Company Limited.
According to Pakistan's Mettis Global News, the memorandum signed in Baku on Monday between PSO and SOCAR Trading SA outlines the establishment of a joint trading company in Singapore. The primary objective is to ensure the reliability of the energy supply chain in Pakistan while leveraging market opportunities.
In addition, under a memorandum between PSO, FWO and SOCAR, the State Oil Company of Azerbaijan has been invited as a potential shareholder in the Machike-Thallian-Tarujabba White Oil Pipeline project. This project aims to connect northern regions of Pakistan with the country's existing pipeline infrastructure.
The memorandum between Pakistan Refinery Limited (PRL), PSO and SOCAR defines key principles for collaboration in consulting support for project management and technical services related to refinery modernization. As part of the agreement, the parties also intend to exchange expertise in feasibility studies, design, technical consulting, risk assessment and mitigation, as well as procurement and contracting.
The addendum signed between SOCAR Trading SA and Pakistan LNG Limited to the LNG sale and purchase framework agreement serves as official confirmation of the contract signed between the companies on December 26, 2024.
As a result, PSO has become the second Pakistani company after Pakistan LNG Limited (PLL) to procure LNG from SOCAR.
The Pakistani government's Economic Coordination Committee (ECC) has approved extending the LNG supply agreement between Pakistan LNG Limited (PLL) and SOCAR Trading for three years. The agreement was initially signed in 2023, and permits PLL to purchase one cargo of LNG per month from the Azerbaijani trader as needed without any financial or take-or-pay commitments.