Pakistan reopens talks with Azerbaijan to import petrol on credit

Pakistan has reopened talks with Azerbaijan to import petrol on credit as it struggles to battle the distressing energy crunch and externally influenced fuel prices, Report informs, citing Pakistani media.

Pakistan has begun talks with the State Oil Company of the Azerbaijan Republic (SOCAR) for importing MOGAS.

The government is aiming for favorable credit terms for the country, and if the deal is reached under a government-to-government (G2G) arrangement, it will ensure the country’s long-term supply of MOGAS. Authorities are looking for 1-2 Mogas cargoes per month from SOCAR.

Islamabad is negotiating with Baku to import 20,000 tons of gas, with the government hopeful for a deal in the coming months.

Both countries previously signed an Inter-governmental Agreement (IGA) in 2017 under which Azerbaijan’s state-owned SOCAR was to supply oil and gas products such as furnace oil, gasoline, diesel, and liquefied natural gas (LNG). SOCAR had previously offered two separate credit lines of $120 million for LNG and $100 million for petroleum products for a period of 60 days.