BAKU, Azerbaijan, September 27. Pakistan is interested in Azerbaijan's investments in the fuel and energy complex (FEC), and this issue was discussed on September 26, 2024, during a meeting between SOCAR’s (State Oil Company of Azerbaijan) leadership and the Ambassador Extraordinary and Plenipotentiary of Pakistan Qasim Mohiuddin, an informed source told Trend.
In July of this year, the Pakistani government sent Azerbaijan an investment proposal package worth $2-3 billion, primarily focused on developing the FEC in Pakistan.
These proposals include SOCAR's equity participation in the Pakistan Refinery Limited (in Karachi), in a gas storage project, in the White Oil Pipeline, in liquefied petroleum gas infrastructure, in the setup of a joint venture between Pakistan State Oil (PSO) and SOCAR, as well as SOCAR’s involvement in offshore and onshore exploration blocks and the supply of third-country petroleum products to Pakistan via SOCAR Trading.
"Positive dynamics are observed in negotiations on these ideas," emphasized the source.
According to the source, SOCAR Trading may begin supplying third-country petroleum products to Pakistan as early as this year.
"As for Azerbaijan’s investment prospects in Pakistan's oil and gas industry projects, there has also been progress in negotiations, but it is too early to discuss the details," the source added.
To note, SOCAR Trading has been supplying third-country liquefied natural gas (LNG) to Pakistan at favorable prices since last year, at the request of the Pakistani side.
Pakistan is experiencing a shortage of petroleum products, with a projected deficit of 14 million tons per year by 2035.