Pakistan’s decision to buy LNG from Azerbaijan

Islamabad: Pakistan has decided to buy LNG from Azerbaijan. Pakistan has earlier delayed the purchase of LNG from Qatar.

According to petroleum division sources, Pakistan LNG Limited called an emergency meeting today to review the overall situation of gas supply and demand in the country.

The board will meet again on Monday. In which the offer of Azerbaijan will be formally approved.

This move by LNG Limited surprised many people in government circles. Because on the one hand the government is asking the local producers to reduce the supply. And Qatar has also delayed deliveries of cheap LNG until 2026 due to gas gluts in the system.

It should be noted that due to the reduction in the demand for electricity, there has been an abundance of gas in the country at this time. Due to which the government has delayed the procurement of gas from Qatar. And local production has also declined.

A board member of PLL objected and said that import of expensive LNG by reducing local production needed clarification.

According to sources, the government will buy LNG from the state-owned oil company of Azerbaijan. For which the bidding will be done on Monday.

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It should be noted that Sui Northern Gas Pipeline Limited has requested to order at least one cargo in January.

Pakistan generates one-third of its electricity generation from gas. But expensive electricity and the promotion of alternatives such as solar panels have reduced electricity demand by 8 percent. If the imported gas is supplied to domestic consumers, it will increase the tariff of the consumers.