BAKU, Azerbaijan, December 19. The governments of Azerbaijan and Pakistan consider the establishment of a liquefied natural gas terminal (LNG terminal) near the shores of Pakistan as relevant and are discussing details of the possible realization of this project, an informed source told Trend.
"The idea of involving SOCAR Trading in the creation of an LNG terminal in Pakistan was voiced in late February 2023 in Baku. This project is relevant for Pakistan and it is being discussed. Now we are talking about the provision by the Pakistani government of necessary guarantees for SOCAR Trading on various issues, creation of attractive mutually beneficial conditions necessary for the project to be effective and profitable," the source said.
Pakistan meets only about 30 percent of its needs through its own energy production, the rest is imported.
In particular, it regularly buys LNG from various producers and traders on the open market, including Azerbaijan's SOCAR Trading, with which it signed a long-term agreement in July 2023.
Azerbaijan does not produce LNG itself, SOCAR Trading buys it from long-standing partners, mainly Royal Dutch Shell.
SOCAR Trading's total LNG portfolio worldwide reached 5 million tons last year, with China among its largest customers.
Pakistan may also become a major buyer of LNG from SOCAR Trading in 2024 (over 700,000 tons, according to plans).
