Pakistan Inks Agreement With Azerbaijan For LNG Cargo

On Tuesday, Pakistan published two tenders for spot liquefied natural gas (LNG) cargoes for the first time in over a year, while simultaneously announcing an agreement in which Azerbaijan will supply the country with one LNG cargo each month.

Due to its reliance on gas for power generation and a lack of foreign cash to pay for imports, the country has struggled to get spot cargoes of LNG since global prices jumped last year in response to Russia's invasion of Ukraine, leaving it with extensive power outages.

However, Asian spot LNG prices have fallen this year from record highs of $70/mmBtu in August to trade below $10.

According to the tenders placed online, Pakistan LNG, a government subsidiary that procures LNG from the international market, has one tender seeking six cargoes on a delivered-ex-ship (DES) basis to Port Qasim in Karachi in October and December.

The delivery dates are October 5-6, 20-21, and 31, as well as December 7-8, 13-14, and 24-25. The tender will finish on June 20th.

Pakistan LNG's second tender wants three cargoes to Port Qasim, similarly on a DES basis, with delivery windows of January 3-4, 28-29, and February 23-24. The deadline for the second tender is July 14.

Pakistan LNG last published a tender for ten spot cargoes in July 2022, but no bids were received.

Separately, Pakistan's petroleum minister, Musadik Malik, told a news conference on Tuesday that Azerbaijan will sell a monthly LNG cargo to Pakistan at a "cheaper price."

He wouldn't go into specifics on the supply deal, but he did say that a contract had already been signed with Azerbaijan and that it will "start soon."= Pakistan has two long-term supply agreements with Qatar, one in 2016 for 3.75 million metric tonnes of LNG per year and another in 2021 for 3 million metric tonnes per year.