PM Shehbaz Sharif to leave for Baku to secure LNG shipment

Minute Mirror - Subscribe
Minute Mirror - Subscribe

Prime Minister Shehbaz Sharif will depart for Azerbaijan to secure short-term LNG shipments from Baku on Wednesday on President Ilham Aliyev’s invitation.

In a recent move, Pakistan announced a monthly LNG cargo deal with Azerbaijan at the same time as releasing two bids for spot liquefied natural gas (LNG) exports after almost a year.

Due to its reliance on gas for power generation and low foreign exchange reserves, Pakistan has had trouble obtaining spot cargoes of liquefied natural gas (LNG), which has been made worse by the rise in world prices brought on by Russia’s invasion of Ukraine.

Azerbaijan agreed to offer Pakistan a monthly LNG shipment at a lower cost on Tuesday, according to Petroleum Minister Musadik Malik. Malik acknowledged that a contract had been signed with Azerbaijan and that the deliveries would start soon, while specifics of the supply agreement were withheld.

There were numerous power disruptions as a result of this issue. But this year, Asian spot LNG prices have sharply dropped, from record highs of $70/mmBtu in August to less than $10.

Ministers from the priority areas of cooperation with Azerbaijan would also be present in the prime minister’s entourage.

The premier will speak with the president of Azerbaijan on a wide range of topics during his visit, including trade, investment, and energy.

Multilateral forums will also be used to debate regional and global issues of shared interest.