(MENAFN- Trend News Agency) BAKU, Azerbaijan, June 5. Pakistani government
may approve an agreement to acquire liquefied natural gas (LNG)
from Azerbaijan's state oil company SOCAR, a source familiar with
the matter told Trend.
SOCAR buys and sells LNG over a very wide geography, including
the Mediterranean basin, Asia and other regions. LNG is purchased
from third parties and forms part of the company's trade with third
parties and buyers. This product is not exported from Azerbaijan
due to the lack of direct sea access of Azerbaijan to the world
With the aim of alleviating the financial strain associated with
procuring liquefied natural gas (LNG) from the global market, the
federal government has made the decision to procure one LNG cargo
per month from SOCAR through a government-to-government
Once the required approvals are obtained, Pakistan LNG Limited
and SOCAR will engage in an agreement that facilitates the
acquisition of LNG from SOCAR at a price below the current spot
rates in the international market.
SOCAR would offer one LNG cargo per month, providing a 45-day
window for the relevant delivery. However, PLL would need to make a
decision within 24 hours whether to purchase the distressed cargo
or not. Payment for the cargo should be made within a few days
after PLL's receipt of the invoice, and the PPL is responsible for
issuing a credit letter from a local bank.
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