The Economic Coordination Committee (ECC) of Pakistani Cabinet is all set to approve the pact between Pakistan LNG Limited (PLL) and Azerbaijan's state oil company SOCAR for import of one liquified natural gas (LNG) cargo monthly, Trend reports via Business Recorder.
Reportedly, SOCAR has offered LNG through a Framework Agreement under the government-to-government arrangement.
PLL has requested for approval of Framework Agreement, which features initial one-year term extendable to another one year with one LNG cargo per month to be offered by SOCAR 45 days prior to the start of the relevant delivery windows.
The proposed Framework Agreement does not contain any specific pricing formula and the LNG price will be quoted for each cargo by SOCAR in USD/ MMBTU. PLL will evaluate the offered price in comparison with the prevailing international price, as well as, consult downstream customers (power sector) to ensure affordability.
SOCAR buys and sells LNG over a very wide geography, including the Mediterranean basin, Asia and other regions. LNG is purchased from third parties and forms part of the company's trade with third parties and buyers. This product is not exported from Azerbaijan due to the lack of direct sea access of Azerbaijan to the world ocean.