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Spot LNG Bonanza: Pakistan’s PM Jetting Off to Azerbaijan

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Pakistan’s Prime Minister Shehbaz Sharif, at the invitation of President Ilham Aliyev, is set to embark on a journey to Azerbaijan today (Wednesday) as Islamabad endeavors to secure prompt deliveries of liquefied natural gas (LNG) from Baku.

In a recent turn of events, Pakistan has issued two bids for immediate consignments of liquefied natural gas (LNG) after an extended hiatus, aligning with the revelation of a monthly LNG cargo pact with Azerbaijan.

The procurement of spot shipments of liquefied natural gas (LNG) has posed challenges for Pakistan, given its reliance on gas for power generation and its limited foreign exchange reserves. The situation has been exacerbated by the surge in global prices triggered by Russia’s incursion into Ukraine.

On Tuesday, Petroleum Minister Musadik Malik announced a breakthrough, stating that Azerbaijan had consented to furnish Pakistan with a monthly LNG cargo at a more favorable price point. While precise details of the supply agreement remain undisclosed, Malik affirmed the completion of a contractual agreement with Azerbaijan, paving the way for imminent deliveries in the coming days.

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