ISLAMABAD: Pakistan LNG Limited (PLL) is negotiating supply of liquefied natural gas from State Oil Company of Republic of Azerbaijan (SOCAR) after the two countries signed an inter-governmental agreement last year.
A price negotiating committee (PNC) has been constituted with the approval of the Economic Coordination Committee of the Cabinet to discuss LNG pricing issues between the two companies, official sources told APP.
Following the agreement, Pakistan has nominated Pakistan State Oil (PSO), Pakistan LNG Limited (PLL), Pakistan LNG Terminal Limited (PLTL), Oil and Gas Development Company Limited (OGDCL), and Pakistan Petroleum Limited (PPL) to negotiate the sale and purchase agreement for petroleum products, LNG supply and establishment of LNG terminals.
Azerbaijan has nominated SOCAR for the purpose.
The sources said draft of sale and purchase agreement for petroleum products has been prepared by PSO and negotiations, in this regard, are expected to start with SOCAR shortly.
World major players are showing keen interest to invest in LNG sector of Pakistan after seeing immense business potential of the commodity, the sources said.
"LNG is the cheapest source of fuel and the world’s major players are showing interest to invest in LNG sector of Pakistan by setting up their own terminals and developing transmission network to supply the commodity to consumers," the sources said.
Before LNG import, Pakistan was importing one million tons fertiliser/year and now it is exporting over six million tons fertiliser, besides entire power generation sector is getting smooth gas supply, the sources added.