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News Desk

Azerbaijan says ready to supply LNG to Pakistan amid energy crunch

Published on: April 22, 2026 10:36 AM

Azerbaijan’s state energy company SOCAR is ready to supply liquefied natural gas (LNG) to Pakistan as soon as it receives a request from Islamabad, the company told Reuters on Tuesday, as Islamabad seeks spot cargoes to ease a growing energy shortfall.

SOCAR said a ?framework agreement signed in 2025 between SOCAR Trading and Pakistan LNG Limited (PLL) allows the Pakistani buyer to purchase LNG cargoes directly under an accelerated procedure.

“SOCAR is ready to provide LNG to Pakistan as soon as PLL submits a corresponding request,” the company ?said in response to Reuters questions.

SOCAR did not say whether such a request had already been made, when a first delivery could ?take place, or who’s LNG would be supplied under the agreement.

Pakistan, which relies heavily on gas ?for its energy needs, remains vulnerable to declining domestic production and swings ?in global LNG prices amid the supply disruptions related to the US-Israeli war on Iran.

Facing criticism over loadshedding even before the beginning of summer, the power division has already placed an order with the petroleum division to arrange around 400 million cubic feet per day (mmcfd) of LNG for power generation, amid hopes for the opening of international supply routes.

A day earlier, it had also emerged that Pakistan and Qatar were in an advanced stage of discussions for the supply of at least four LNG cargoes, which could pass through the Strait of Hormuz within a couple of days.

Qatar had declared force majeure early last month on all its global LNG contracts, including those with Pakistan.

Separately, the State Bank of Pakistan (SBP) said on Tuesday it received funds of $1 billion from the Ministry of Finance, Kingdom of Saudi Arabia.

“This is the second tranche of the $3 billion deposit recently agreed by the Kingdom of Saudi Arabia,” said the central bank.

The first tranche of $2 billion was received on 15th April 2026, it added.

Last week, Finance Minister Muhammad Aurangzeb informed that Saudi Arabia had committed $3 billion in additional deposits, with disbursement expected soon.

He further stated that the existing $5 billion Saudi deposit would no longer remain subject to the earlier annual rollover arrangement and would instead be extended for three years.

The extra funding for Pakistan comes on top of Riyadh extending the rollover arrangement for an additional $5 billion deposit for a longer period, Aurangzeb told reporters in Washington.

“We can confirm that Saudi Arabia has agreed to a $3 billion deposit with Pakistan to support their balance of payments,” a Saudi Ministry of Finance spokesperson told Reuters.

Pakistan faces a $3.5 billion repayment to the UAE this month that has put a strain on its foreign exchange reserves.

The repayment to the UAE amounts to roughly 18% of those holdings.

Filed Under: Pakistan Tagged With: Azerbaijan, Liquefied Natural Gas (LNG), Pakistan

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