Pakistan LNG Limited (PLL) is negotiating supply of Liquefied Natural Gas from State Oil Company of Republic of Azerbaijan (SOCAR) after the two countries signed an Inter-Governmental Agreement (IGA) last year. Report informs citing the Associated Press of Pakistan.
“A Price Negotiating Committee (PNC) has been constituted with approval of Economic Coordination Committee of the Cabinet to discuss LNG pricing issues between PLL and SOCAR,” official sources told APP.
Following the agreement, they said Pakistan had nominated Pakistan State Oil Company Limited (PSOCL), Pakistan LNG Limited (PLL), Pakistan LNG Terminal Limited (PLTL), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL) for negotiating sale and purchase agreement for petroleum products, LNG supply and establishment of LNG terminals. While, the Azerbaijani side nominated the SOCAR for the purpose.
The sources said draft of sale and purchase agreement for petroleum products had been prepared by PSO and negotiations in this regard were expected to start with SOCAR shortly.
Answering a question, they said world major players were showing keen interest to invest in LNG sector of Pakistan after seeing immense business potential of the commodity here.
“LNG is the cheapest source of fuel and the world’s major players are showing interest to invest in LNG sector of Pakistan by setting up their own terminals and developing transmission network to supply the commodity to consumers,” they said.
Before LNG import, they said Pakistan was importing one million ton fertilizer per year and now it was exporting over six million tons fertilizer, besides entire power generation sector was getting smooth gas supply.