ISLAMABAD: Pakistan LNG Limited (PLL) is negotiating supply of liquefiednatural gas from State Oil Company of Republic of Azerbaijan (SOCAR) afterthe two countries signed an inter-governmental agreement (IGA) last year,sources said on Tuesday.
A price negotiating committee (PNC) has been constituted with the approvalof the Economic Coordination Committee (ECC) of the Cabinet to discuss LNGpricing issues between PLL and SOCAR, they told APP.
Pakistan has nominated Pakistan State Oil (PSO), Pakistan LNG Limited(PLL), Pakistan LNG Terminal Limited (PLTL), Oil and Gas DevelopmentCompany Limited (OGDCL), and Pakistan Petroleum Limited (PPL) fornegotiating sale and purchase agreement for petroleum products, LNG supplyand establishment of LNG terminals, while, Azerbaijan has nominated SOCARfor the purpose.
The sources said draft of sale and purchase agreement for petroleumproducts has been prepared by PSO and negotiations are expected to startwith SOCAR shortly.
World major players are showing keen interest to invest in LNG sector ofPakistan after seeing immense business potential of the commodity, thesources said.
“LNG is the cheapest source of fuel and the world’s major players areshowing interest to invest in LNG sector of Pakistan by setting up theirown terminals and developing transmission network to supply the commodityto consumers,” they added.
Before LNG import, the sources said, Pakistan was importing one milliontons of fertiliser/annum and now it is exporting over six million tons offertiliser, besides entire power generation sector is getting smooth gassupply. – APP