Next month, Azerbaijan will begin shipping cargo containers filled with liquefied natural gas (LNG) to Pakistan, the PM Office announced on Thursday.
The choice was made during a meeting between Prime Minister Shehbaz Sharif and President Ilham Aliyev in Baku, the capital of Azerbaijan.
I had a wonderful meeting with H.E. President Ilham Aliyev in which we reviewed the present state of bilateral relations between our two countries. We have agreed to upgrade the ties commensurate with our excellent relationship. According to our shared resolve, trade, investment… pic.twitter.com/2sapiNxu5H
— Shehbaz Sharif (@CMShehbaz) June 15, 2023
Following the recent arrival of crude oil from Russia, this is Pakistan’s second significant victory in meeting its energy demands.
One LNG Ship Will Receive By Pakistan Every Month From Azerbaijan
PM Shehbaz Sharif informed the Azeri president that receiving the LNG cargoes from Azerbaijan had received federal cabinet approval at the meeting. One shipment at a discounted pricing will go to Pakistan each month.
The PM Office stated that Shehbaz Sharif has been working on the aforementioned agreement with Azerbaijan for the past six months.
The two leaders decided that through collaboration in the oil and gas industries, Azerbaijan will assist Pakistan in meeting its energy needs.
The PM Office announced a government-to-government partnership between Pakistan State Oil (PSO) and State Oil Company of the Azerbaijan Republic (SOCAR) to work out the energy resources.
It was decided that Azerbaijan would make investments in Pakistan’s alternative energy industry, particularly solar power production.
Both nations decided to create an elaborate system for duty exemption for rice imported from Pakistan into Azerbaijan.
The two flights Azerbaijan Airlines – AZAL – would run to Islamabad and Karachi each week were agreed upon.
The two parties also decided to expand their collaboration in the fields of trade, agriculture, and transportation.
The second nation in the world to acknowledge Azerbaijan after its independence is Pakistan.
An agreement on cooperation in defence production had been signed on March 1, 2017, by President Ilham Aliyev and former Prime Minister Nawaz Sharif.
To read our blog on “As Pakistan struggles to get bids for its $1 billion LNG tender, the energy crisis will only get worse,” click here.