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  Pakistan Eyes Importing 1M Tonnes of Russian Oil per Year

First import of crude oil shipment arrived in June.

Second govt-to-govt cargo is being negotiated.

Cnergyico imported Russian crude oil cargo last week.

MOSCOW: Pakistan’s Caretaker Energy Minister Mohammad Ali said Islamabad was mulling to sign a long-term agreement to purchase between 0.7 million and 1 million tons (up to 20,000 bpd) of Russian oil per year, The News reported on Friday, quoting TASS, a Russian news agency.

After the export of Russian crude oil was banned from European markets following Moscow's Ukraine invasion, Pakistan has attempted to benefit from buying the commodity at cheaper prices.

The first import of crude oil shipment arrived in Pakistan in June this year, while the second government-to-government cargo is being negotiated. Pakistan refiner Cnergyico, last week, imported the first-ever private-sector shipment of crude oil from Russia.

Grappling with high inflation and a foreign exchange crisis, Pakistan has also struggled with spot purchases of Liquified Natural Gas (LNG) after Russia’s invasion of Ukraine last year pushed prices to record highs, leaving the South Asian nation to face widespread power outages.

Earlier this month, Pakistan LNG Limited (PLL), a government subsidiary that procures LNG from the international market, awarded a tender to commodities trader Vitol for the delivery of a liquefied natural gas (LNG) cargo in December, making it the country’s first spot purchase in over a year.

Islamabad, early in October, was scheduled to discuss a long-term programme for the import of discounted crude oil from Russia with Moscow next week, as the government sought to diversify its energy supplies at cheaper rates.

A Pakistani delegation, headed by the interim energy minister, was scheduled to attend the Russian Energy Week 2023 on October 11-13 at the Manege Central Exhibition Hall in the Russian capital.

by geo

[13 October, 2023 / world-energy.org ]   
 
 
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