Azerbaijan aims to restart LNG supply, boosting energy market
Published on: April 5, 2024.
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Azerbaijan Urges Pakistan to Resume LNG Imports, Focus on Economic Cooperation
Azerbaijan has called on Pakistan to resume imports of liquefied natural gas (LNG) from the Central Asian nation to meet its growing domestic consumption needs. During the tenure of the Pakistan Democratic Movement (PDM) government, the two countries signed an agreement for the import of at least one LNG cargo per month. However, Pakistan only imported a few LNG cargoes from Azerbaijan and was unable to continue regular supplies.
In a meeting between Federal Minister of Commerce Jam Kamal Khan and Ambassador of Azerbaijan to Pakistan Khazar Farhadov, the ambassador emphasized the need for Pakistan to resume LNG supplies and explore mutual investments, particularly in the energy and information technology sectors.
Currently, Pakistan imports LNG from Qatar under a long-term contract, but Azerbaijan wants Pakistan to consistently import LNG from them, with at least one cargo per month. As part of the LNG deal, Azerbaijan would offer a price lower than the prevailing rate in the international gas market.
Additionally, Pakistan and Azerbaijan are in the final stages of finalizing a preferential trade agreement (PTA) to boost bilateral trade. The two countries aim to finalize the deal as soon as possible to take advantage of new opportunities and significantly enhance bilateral trade. This PTA could also pave the way for Pakistan’s entry into the Russian market, which offers numerous opportunities due to tensions with EU member states after the Ukraine conflict.
The commerce minister highlighted the historical, political, and economic ties between Pakistan and Azerbaijan and stressed the need for addressing major challenges to fully maximize bilateral trade. He noted an increase in exports to Azerbaijan, reaching $12.08 million in 2022-23, and emphasized the importance of high-level visits to enhance bilateral relations and trilateral cooperation with Turkey.
The PTA between Pakistan and Azerbaijan is currently being finalized, and Azerbaijan has exempted Pakistani rice from customs duty until December 2027 as a goodwill gesture. The minister reaffirmed Pakistan’s commitment to strengthen commercial and economic ties, emphasizing the importance of people-to-people contacts and the signing of the PTA to boost trade volumes and create new business opportunities.
Source: [The Express Tribune](https://tribune.com.pk)
