2024-08-02 17:20:47
Source: Trend International Information Agency
SOCAR may begin selling oil products produced in third countries to Pakistan at competitive prices this year.
As reported by Day.Az, a source in the Azerbaijani government told Trend about this.
“SOCAR Trading has been supplying liquefied natural gas (LNG) from third countries at favorable prices at the request of the Pakistani side since last year. This year, as part of expanding economic cooperation, this SOCAR trading house plans to begin supplying a number of in-demand petroleum products to Pakistan. The volumes are being clarified,” the source noted.
According to Pakistani experts, by 2030 the deficit in petroleum products in Pakistan will be 9 million tons per year, and by 2035 it could grow to 14 million tons per year.
An Azerbaijani source said the government is studying investment proposals from Pakistan on a number of possible joint projects, but so far considers energy trade to be the closest to operational implementation.
It should be noted that in July of this year, the Pakistani government announced the formation of proposals to Azerbaijan aimed at increasing economic cooperation.
Among the ideas are SOCAR’s participation in the Pakistan Refinery Limited in Karachi, in the underground gas storage project, in the White Oil Pipeline, in the infrastructure for liquefied petroleum gas, in the creation of a joint venture between Pakistan State Oil (PSO) and SOCAR, and SOCAR’s entry into exploration blocks on the sea and on land.
Pakistani media reported on July 8 that the portfolio of investment proposals could be valued at US$2-3 billion.
There are 6 oil refineries in Pakistan with a total capacity of about 20 million tons per year, but due to outdated equipment they operate at half capacity and cannot cover the country’s needs for petroleum products.
Let us recall that in the summer of 2023, the Pakistani government invited Azerbaijan to join an ambitious project to build an oil refinery in the port of Gwadar (Gulf of Oman) with a processing capacity of 0.3 million barrels of oil per day and a cost of 10-16 billion US dollars, but this idea was recognized in Azerbaijan as commercially impractical.
Companies from China and Saudi Arabia were interested in this project, but no agreement was reached.
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