Pakistan Keen on Energy Cooperation with Azerbaijan

Pakistan is looking at Azerbaijan for greater cooperation in energy sector.

Shahid Khaqan Abbasi, Minister for Petroleum and Natural Resources, and Yavar Jamalov, Minister for Defence Industry of Azerbaijan met during Pakistan-Azerbaijan Joint Commission (PAJC) held in Islamabad on Thursday to discuss expansion in bilateral cooperation in various sectors including oil and natural gas, Dawn, a local newspaper reported.

Both sides decided to enhance business-to-business contacts through a Joint Business Council which is scheduled to meet later this year, Dawn reported.

The two side agreed to facilitate talks and subsequent signing of MoU between the State Oil Company of Azerbaijan (SOCAR) and the Pakistan State Oil Company (PSO) and other nominated entities of Pakistan under the inter-governmental agreement (IGA) for trading crude oil, refined oil products, LNG and LPG as well as joint development of new facilities for their import.

To augment energy supplies, Pakistan has stepped up effort to attract foreign investment, especially in the oil, gas and LNG sectors. The government recently approved the construction of Russian funded North-South gas pipeline. The pipeline will start from Nawabshah and end at Kasur, near Lahore.

Islamabad has also attracted Chinese investment in LNG terminal and other pipeline projects. The Pakistani economy has been facing severe shortage of natural gas which has led to frequent power outages affecting industrial activity. To fill up the gap it has commenced import of LNG mainly from Qatar. Earlier this year, Islamabad and Doha signed a long term LNG contract after prolonged negotiations.