Pakistan and Azerbaijan are likely to sign an oil and gas trade deal during the visit of Azerbaijan’s president at the end of the current month.
Following the signing of an inter-governmental agreement for energy cooperation, the two sides will also explore a commercial contract to execute the proposed oil and gas trade deal.
The two countries have already agreed on a draft government-to-government agreement for the energy sector and the cabinet has endorsed the draft.
Foreign Affairs and Law and Justice Divisions have also cleared the draft from political and legal points of view.
Azerbaijan President Ilham Aliyev will arrive in Pakistan on February 26.
“Azerbaijan has offered export of crude oil, petroleum products and liquefied natural gas (LNG) to Pakistan,” said a senior official of the Ministry of Petroleum and Natural Resources.
It has also expressed interest in constructing a terminal as well as LNG and liquefied petroleum gas (LPG) storages in a joint venture between Azerbaijan’s state oil company Socar and a Pakistan-designated company.