WEB DESK: The Pakistan State Oil (PSO) has formalised a landmark Sale Purchase Agreement (SPA) with the State Oil Company of the Republic of Azerbaijan (SOCAR) to enhance the supply of petroleum products in Pakistan.
PSO has said in its notice to the Pakistan Stock Exchange (PSX) on Thursday that the SPA was approved by the Board of Management (BoMs) of the company after getting confirmation and nods from the Economic Coordination Committee (ECC) and the Federal Cabinet.
In its letter dated December 3, 2024, the Ministry of Energy (Petroleum Division) has urged PSO to move quickly in signing this agreement. The signed agreement was received from SOCAR on December 24, 2024.
The agreement provides for PSO as the second entity of Pakistan to establish strategic relations with SOCAR after Pakistan LNG Limited (PLL), which signed a framework agreement with the Azerbaijani energy giant last year for LNG imports.
This SPA will be a reliable supply of petroleum products from SOCAR to PSO, further strengthening Pakistan’s efforts to diversify energy sources and its medium and long-term fuel supply strategies. It is critical to fulfilling the country’s domestic energy requirements and forging a new path by looking beyond traditional suppliers.
Currently, most LNG needs are met in Pakistan through long-term supply deals with Qatar, supplemented by spot cargo purchases to fill deficiencies. The agreement furthers the government strategy for greater energy linkages and builds resilience against disruption in supply chains given rising energy needs.
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