KARACHI: Azerbaijan’s state energy company SOCAR has said it is prepared to supply liquefied natural gas (LNG) to Pakistan as soon as Islamabad places a request, offering a potential lifeline as the country grapples with mounting power shortages.
“SOCAR is ready to provide LNG to Pakistan as soon as PLL submits a corresponding request,” the company told Reuters the other day.
The offer comes under a framework agreement signed in 2025 between SOCAR Trading and Pakistan LNG Limited (PLL), which allows the Pakistani buyer to purchase cargoes directly through an accelerated procedure. Under the deal, SOCAR will offer one LNG cargo per month, though Pakistan is under no obligation to accept.
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The development comes at a critical time for Pakistan. Domestic gas production continues to decline, hydropower output has fallen to roughly half of last April’s levels, and LNG supplies have been disrupted by the Iran war. Qatar’s force majeure has forced Islamabad to seek spot cargoes or alternative fuels ahead of peak summer demand.
To bridge the gap, authorities are running costlier furnace oil-based plants to full capacity and have delayed nuclear plant maintenance. Load management of up to six to seven hours has been reported in some areas.
Petroleum Minister Ali Pervaiz Malik said that while Pakistan may tap spot LNG markets, it would prioritise government-to-government arrangements, including with SOCAR, to avoid steep premiums. Spot LNG prices have surged to $20–$30 per mmBtu amid the Middle East conflict.
Pakistan and SOCAR first signed their LNG framework in Lahore on July 24, 2023, witnessed by Prime Minister Shehbaz Sharif. The agreement covers 12 low-cost cargoes per year for one year, extendable to two years. The first cargo was delivered in December 2023, with a second slated for February 2024.
SOCAR did not say whether Pakistan has submitted a new request under the latest offer, or whose LNG would be supplied. Pakistan typically imports 8–10 LNG cargoes a month under long-term contracts, but has faced a supply glut in recent years as domestic generation and solar uptake reduced demand.
Energy experts believe the offer from Baku has been widely reported in local media as a possible buffer against further supply shocks, with officials also routing some crude imports via Saudi Arabia’s Red Sea port of Yanbu to bypass the Strait of Hormuz.
