Dar-led ECC meeting approves LNG procurement from Azerbaijan

A meeting of the Economic Coordination Committee (ECC), chaired by Finance Minister Ishaq Dar, has approved the agreement to procure Liquefied Natural Gas (LNG) from Azerbaijan, reported 24NewsHD TV channel on Wednesday.

Official sources have said that Azerbaijan has offered to sell LNG to Pakistan. The state-owned company “Socar” of Azerbaijan proposed a government-level framework agreement for the purpose.

Socar has offered to provide one LNG cargo per month, and Pakistan LNG Limited will make payments to Socar in dollars according to the proposed agreement.

The Letters of Credit (LCs) will be opened in local banks for payments.

PLL has been facing difficulties in procuring spot cargoes since June 2022. It tried to procure LNG but was not successful.

Informed sources have said that an intergovernmental agreement has been reached between Pakistan and Azerbaijan for cooperation in the energy sector.

Reporter: Waqas Azeem