Pakistan’s Caretaker Energy Minister Mohammad Ali stated Pakistan was considering signing a long-term agreement to purchase between 0.7 million and 1 million tons (up to 20,000 bpd) of Russian oil each year.
Following the prohibition on the export of Russian crude oil from European markets as a result of Moscow’s invasion of Ukraine, Pakistan has attempted to benefit by purchasing the commodity at cheaper prices.
In June of this year, Pakistan received its inaugural crude oil shipment, and negotiations are underway for a second government-to-government cargo. Additionally, Pakistan’s private-sector refiner, Cnergyico, marked a significant milestone by importing the first-ever private-sector shipment of Russian crude oil.
Pakistan has been grappling with challenges such as high inflation and a foreign exchange crisis. The situation was further exacerbated by the surge in liquefied natural gas (LNG) prices following Russia’s invasion of Ukraine last year, leading to widespread power outages in the South Asian nation.
Recently, Pakistan LNG Limited (PLL), a government subsidiary responsible for LNG procurement from the international market, awarded a tender to commodities trader Vitol for the delivery of an LNG cargo in December. This marks Pakistan’s first spot purchase in over a year.
To address its energy needs at more affordable rates, Islamabad was set to engage in discussions with Moscow earlier this month. The discussions revolved around a long-term program for importing discounted crude oil from Russia, as Pakistan sought to diversify its energy supplies.
A Pakistani delegation, led by the interim energy minister, was scheduled to participate in the Russian Energy Week 2023, held from October 11-13 at the Manege Central Exhibition Hall in the Russian capital.
