Shahid Khaqan resigns from ECC over Azerbaijan LNG purchase

Former prime minister Shahid Khaqan Abbasi has resigned from the Economic Coordination Committee (ECC) following disagreements over the purchase of liquefied natural gas (LNG) from Azerbaijan on an intergovernmental basis, sources told Geo News.

The sources further revealed that Abbasi opposed LNG procurement from Azerbaijan via a state-owned company, Pakistan LNG Limited (PLL).

The senior politician, who is a member of the Pakistan Muslim League-Nawaz (PML-N), believed that a private Pakistani company should handle the purchase of LNG cargo from Azerbaijan instead, the sources added.

Meanwhile, the Petroleum Division, as per the sources, had declined to prepare the required summary as directed by Abbasi.

The PML-N stalwart's resignation comes after Prime Minister Shehbaz Sharif's recent visit to Azerbaijan, during which discussions took place regarding enhanced cooperation in various sectors, including the supply of LNG.

Abbasi's resignation from the ECC highlights the diverging opinions within the government regarding the procurement of LNG from Azerbaijan. 

In a meeting between the premier and Azerbaijani President Ilham Aliyev, it was agreed that Azerbaijan would assist Pakistan in meeting its energy needs by providing support in the oil and gas sector.

As per the agreement, Azerbaijan has committed to supplying LNG to Pakistan at a discounted price on a monthly basis. Earlier this week, the federal cabinet also approved the agreement.

“This is the second major achievement for Pakistan towards the fulfilment of energy needs after recently receiving the shipment of crude oil from Russia,” the communique read.

Under the agreement, Pakistan will receive one LNG cargo on concessional rates per month from next month. According to the PM Office, the premier has been working on the deal with Azerbaijan for the last six months.