ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif will travel to Azerbaijan today (Wednesday), at the invitation of President Ilham Aliyev, in order to receive spot liquefied natural gas (LNG) supply from Azerbaijan.
After nearly a year, Pakistan recently released two tenders for spot liquefied natural gas (LNG) shipments, coinciding with the announcement of a monthly LNG cargo agreement with Azerbaijan. Pakistan has had difficulty obtaining spot cargoes of liquefied natural gas (LNG) due to its dependence on gas for power generation and low foreign exchange reserves, which has been worsened by the surge in global prices caused by Russia’s invasion of Ukraine.
Petroleum Minister Musadik Malik said on Tuesday that Azerbaijan has agreed to offer Pakistan a monthly LNG cargo at a lower price. Although specifics of the supply agreement were not revealed, Malik said a contract had been signed with Azerbaijan and that delivery would begin soon. As a result of this incident, there were widespread power disruptions. However, Asian spot LNG prices have fallen significantly this year, from record highs of $70/mmBtu in August to below $10.
Cooperation Between Pakistan and Azerbaijan
Meanwhile, the prime minister’s entourage would comprise ministries representing Azerbaijan’s priority areas of cooperation. During his visit, the premier will hold lengthy conversations with Azerbaijan’s president on key areas of cooperation such as trade, investment, and energy. Meanwhile, regional and global issues of mutual interest and cooperation will be explored in multilateral forums.
According to the FO statement, the Pakistan-Azerbaijan relationship is rooted in religious, cultural, and historical similarities, and it is strengthened by mutual trust and convergence of views on global and regional matters. The minister went on to say that the frequent exchanges of leadership emphasize the two countries’ friendship and help to closer diversified cooperation for the mutual benefit of the peoples of Pakistan and Azerbaijan.
