Pakistan extends LNG supply deal with SOCAR Trading for three more years

The Economic Coordination Committee (ECC) of the Cabinet of Ministers of Pakistan has approved a three-year extension of the framework agreement between Pakistan LNG Limited and SOCAR Trading for the supply of liquefied natural gas (LNG).

The agreement, originally signed in 2023, enables Pakistan LNG Limited to purchase one LNG cargo per month, based on the country’s needs, without any take-or-pay commitments, Caliber.Az reports via local media.

The extension is in line with Pakistan's strategy to ensure flexible LNG procurement, adjusting to seasonal demand and enhancing the overall economic efficiency of the country's energy sector.

SOCAR Trading, established in 2007 as a marketing arm of the State Oil Company of the Azerbaijan Republic (SOCAR), has been focusing on the development of LNG and natural gas trading since 2017. Additionally, in 2021, the company launched a platform for carbon credit trading.

Pakistan LNG Limited (PLL) is a state-owned company responsible for the import, storage, and distribution of liquefied natural gas (LNG) in Pakistan. Established in 2012, PLL plays a pivotal role in the country’s energy sector by meeting its growing natural gas demand, especially during peak seasons when domestic gas production is insufficient. PLL is responsible for managing LNG procurement agreements, ensuring the smooth delivery of LNG supplies, and overseeing the construction and maintenance of LNG infrastructure, such as import terminals. The company collaborates with various international and local partners to ensure a steady and reliable energy supply to Pakistan, contributing significantly to the country’s energy security.

By Naila Huseynova