“ECC authorizes Pakistan” LNG for framework deal with SOCAR Trading.
According to a statement issued by the Finance Division, Finance Minister Ishaq Dar presided over the ECC meeting on Wednesday during which the committee discussed a report from the Ministry of Energy Petroleum Division about the framework agreement between PLL and SOCAR.
ECC approved PLL to carry out the proposed framework agreement with SOCAR Trading after a thorough deliberation.
According to a statement from the Finance Division, the ECC also instructed the Ministry of Petroleum to estimate Pakistan’s need for LNG on a rolling basis at least three months in advance.
Earlier this week, Pakistan announced a contract with Azerbaijan under which the two countries would exchange two tenders for spot LNG cargoes, the first time in nearly a year.
The nation, which relies on gas for power generation and is short on foreign currency to pay for imports, has struggled to obtain spot LNG cargoes after market prices rose last year as a result of Russia’s invasion of Ukraine, leading it to experience extensive power outages.
According to the tenders published online, Pakistan LNG, a government entity that purchases LNG from the international market, has one tender seeking six cargoes on a delivered-ex-ship (DES) basis to Port Qasim in Karachi in October and December.
Separately on Tuesday, Musadik Malik, the petroleum minister of Pakistan, stated at a news conference that Azerbaijan will provide Pakistan with one LNG cargo each month at a “cheaper price.”
According to the agreement, the Central Asian nation would provide Pakistan a distressed LNG shipment per month.
“Pakistan would have the option to accept the shipment or not in accordance with the contract’s provisions. However, Azerbaijan would have to deliver distress cargo every month, he continued.
The Finance Division also reported on Wednesday that the ECC had authorized a technical extra grant for the Cabinet Division in the amount of Rs404.769 million for six aviation squadrons’ different needs.
Additionally, the ECC discussed and approved an additional Rs734 million in funds for the Ministry of Industries and Production to be used for the payment of employee salaries at the Heavy Electrical Complex (HEC), a markup to the Bank of Khyber, and operating/running costs, subject to the reconciliation of financial division data.
Additionally, it instructed the Privatization Commission to finish the privatization of HEC by June 30.