KARACHI: The Pakistani government is scheduled to discuss a long-term program for the import of discounted crude oil from Russia with the administration in Moscow next week, it was reported on Saturday.
As per details, a Pakistani delegation, headed by the interim energy minister, Muhammad Ali, will attend the Russian Energy Week 2023 on October 11-13 at the Manege Central Exhibition Hall in the Russian capital.
Pakistan has already started importing crude oil and liquefied natural gas (LNG) from Russia.
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“The Pakistani delegation will be led by the energy minister along with the secretary of petroleum to participate in energy week and exhibition,” Shahbaz Tahir Nadeem, the petroleum division spokesperson, confirmed.
“Talks with Russia for a long-term deal [related to the oil import] are already going on and that may be discussed during the upcoming visit,” he added without divulging further details.
Another petroleum division official, however, said the delegation would hold talks with Russian officials over the subject on the sidelines of the event.
The official, who declined to be named, informed the Pakistani delegation would also discuss LNG import options and the Pakistan Stream Gas Pipeline (PSGP), formerly known as the North-South gas pipeline, during the meeting with the Russians.
The PSGP is a project jointly implemented by the two countries in Pakistan.
The petroleum division official informed the paperwork was being finalized by the participants with an option of asking Russians to fix the supply of discounted crude oil at $60 per barrel under the deal.
The official said both sides would also consider the progress on setting up a Special Purpose Vehicle (SPV), a legal entity, agreed upon between them but which has not been formed yet. He added the SPV’s absence was also causing delays in the long-term deal materialization.
The collaboration between Islamabad and Moscow in the energy sector stems from a government-to-government (G2G) agreement signed earlier this year. This move by the South Asian nation is aimed at expanding its sources of energy imports while securing cost-effective options.
