Pakistan plans to sign a framework agreement with Azerbaijan on the purchase of liquefied natural gas (LNG), a source close to Pakistani Minister of State for Petroleum and Natural Resources Musadik Malik said, Trend reports citing the Pakistani media.
"The framework agreement with Azerbaijan is in the final stage and will be completed in weeks or maybe a month," he said.
Under the agreement, the State Oil Company (SOCAR) will supply LNG to Pakistan at a lower price.
Pakistan LNG Limited asked the Pakistani government to approve the framework agreement. The initial signature period is one year with an option to extend for another year, one LNG shipment per month will be offered by SOCAR 45 days prior to the start of the respective delivery dates, and each cargo offer will have a fixed validity period, during which PLL may accept the offer. Also the price of LNG will be indicated by SOCAR for each shipment in dollars.
Meanwhile, an intergovernmental agreement on cooperation in the field of energy was signed between the two countries on February 28, 2017.