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Tuesday, July 16, 2024

Russia and Pakistan agree on energy supplies

Moscow will reportedly sell its crude to Islamabad at discounted rates

Russia will provide oil, gasoline, and diesel to Pakistan at a discounted price, the minister of state for petroleum, Musadik Malik, announced on Monday, days after he led a government delegation to Moscow to negotiate the deal.

He did not specify the price of the discounted oil or whether the imports would comply with the $60 per barrel price cap imposed by the EU and G7 nations on Russian seaborne oil starting this week.

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Speaking to reporters, Malik said that the talks with Moscow turned out “more productive than expected.” He indicated that his country is seeking to negotiate long-term deals with Russia for imports of liquefied natural gas (LNG) as there is currently no stable supplier for Pakistan.

“The Russian government is building new LNG plants and has offered Pakistan to start talks on long-term contracts for 2025 and 2026,” the minister said.

According to Malik, Moscow is also interested in supplying natural gas to the country and is now negotiating the construction of the Pakistan Stream gas pipeline and another large pipeline project.

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Pakistan, the world’s fifth most populous country, has been struggling with an acute energy shortage, and the surge in global oil and gas prices has exacerbated the situation. Imports of the fuel have become five to ten times more expensive due to increased demand in the EU.