PM Shehbaz leaves for Azerbaijan as Pakistan seeks LNG cargoes

As Islamabad aims to secure spot liquefied natural gas (LNG) shipments from Baku, Prime Minister Shehbaz Sharif has left for Azerbaijan on Wednesday at the invitation of President Ilham Aliyev.

A day earlier, Pakistan issued two tenders for spot liquefied natural gas (LNG) cargoes after almost a year while simultaneously revealing an agreement with Azerbaijan to receive a monthly LNG cargo from them.

Due to its reliance on gas for power generation and limited foreign exchange reserves, Pakistan has faced challenges acquiring spot cargoes of liquefied natural gas (LNG) since global prices surged due to Russia's invasion of Ukraine.

Petroleum Minister Musadik Malik, on Tuesday, announced that Azerbaijan had agreed to provide Pakistan with a monthly LNG cargo at a more affordable price. Although specific details of the supply agreement were not disclosed, Malik confirmed that a contract had been signed with Azerbaijan and that the deliveries would commence in the near future.

This situation resulted in widespread power outages. However, Asian spot LNG prices have significantly declined this year, dropping from the record highs of $70/mmBtu witnessed in August to below $10.

Meanwhile, the prime minister's entourage would also include ministers representing the priority areas of cooperation with Azerbaijan.

During his visit, the premier will hold wide-ranging talks with the Azerbaijani president on key areas of cooperation, including trade, investment and energy.

Meanwhile, regional and global issues of mutual concern and cooperation in multilateral forums will also be discussed.

"Pakistan-Azerbaijan relationship is embedded in commonalities of faith, culture and history, and strengthened by mutual trust and convergence of views on regional and global matters," the FO statement read.

The minister added that the frequent leadership-level exchanges highlight the bonds of friendship between the two countries and contribute to closer multifaceted cooperation for the mutual benefit of the people of Pakistan and Azerbaijan.

On the other hand, the Economic Coordination Committee (ECC) will meet today (Wednesday) with Finance Minister Senator Ishaq Dar to take up the issue of approval for the import of distressed LNG for the third time from an Azerbaijan firm SOCAR, based in the UK.