Pakistan's ECC allows PLL to sign LNG deal with Socar

The Economic Coordination Committee (ECC) of the cabinet of Pakistan has granted approval for state-owned Pakistan LNG (PLL) to proceed with a proposed framework agreement with the State Oil Company of Azerbaijan Republic (SOCAR) for the supply of LNG cargoes, the government said on June 14.

PLL aims to procure LNG cargoes from Socar at rates lower than the prevailing international prices. This is expected to help alleviate the challenges faced by Pakistan in sourcing LNG, which have resulted in gas shortages and subsequent adverse effects such as frequent blackouts and disruptions to industrial activities.

During the ECC meeting chaired by finance minister senator Mohammad Ishaq Dar in Islamabad, the ministry of petroleum was directed to proactively plan and determine the country's LNG requirements at least three months in advance on a rolling basis. This measure aims to improve the planning and management of LNG supplies in Pakistan, the government said.

PLL on June 13 announced its intention to secure nine LNG cargoes for the months of October, December, January 2024, and February 2024.