Pakistan and Azerbaijan will sign an agreement today on supplies of liquified natural gas (LNG), a source familiar with the matter told Trend.

Pakistani Cabinet's Economic Coordination Committee (ECC) granted approval to a framework agreement between for the import of liquefied natural gas. The agreement will be carried out by Pakistan LNG Ltd (PLL), a state-owned company, through government-to-government trading.

In order to ensure adequate LNG supply, the ECC directed the Ministry of Petroleum to assess Pakistan's LNG requirements on a rolling basis, with at least three months' advance notice.

The initial duration of the agreement will be one year, with the possibility of a one-year extension. Under this agreement, Azerbaijan’s state oil company SOCAR will provide one LNG cargo per month, with an offer made 45 days prior to the relevant delivery window. Each cargo offer will have a specified validity period, during which PLL can accept or reject the offer. The pricing of LNG will be denominated in US dollars and offered by SOCAR to PLL.

by en.trend