Pakistani Gov't May Approve Agreement To Acquire LNG From SOCAR

(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 ocean.

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 agreement.

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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