According to the TASS news agency, interim energy minister of Pakistan, Mohammad Ali, stated on Thursday that Islambad is considering striking a long-term deal to acquire between 0.7 million and 1 million tons (up to 20,000 bpd) of Russian oil every year.
The South Asian country has begun purchasing crude oil that Moscow discounted after its exports were barred from European markets as a result of Russia’s invasion of Ukraine.
Previous Government of Pakistan Imported Russian Crude Oil
Previous government-imported cargo landed in June, and a second government-to-government transfer is currently being negotiated.
Cnergyico, a petroleum refinery, purchased the country’s first private-sector consignment of Russian crude oil last week.
Oil and energy account for the majority of Pakistan’s import bill, and the government is facing a balance of payments crisis due to depleting foreign reserves.
LNG Crisis
In addition to dealing with rising inflation and a foreign exchange problem, Pakistan has suffered with spot purchases of Liquified Natural Gas (LNG) fuel after Russia’s invasion of Ukraine last year pushed prices to all-time highs, leaving the South Asian nation without power.
Pakistan LNG Limited (PLL), a government corporation that purchases LNG from the international market, awarded a tender earlier this month to commodities trader Vitol for the delivery of a liquefied natural gas (LNG) cargo in December, marking the country’s first spot purchase in over a year.
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