Amid European bans on Russian crude oil post the Ukraine invasion, Pakistan’s Caretaker Energy Minister, Mohammad Ali, contemplates a prolonged agreement to procure 0.7 to 1 million tons of Russian oil.
In capitalizing on the European market void, Pakistan has been purchasing crude oil at reduced prices. June marked the arrival of its first crude oil consignment from Russia, with negotiations for the next government-backed shipment underway. Notably, Cnergyico, a Pakistan refiner, recently marked the first private-sector import of Russian crude oil.
As Pakistan grapples with soaring inflation, a foreign exchange quandary, and power outages due to escalated LNG prices post Russia’s Ukraine incursion, efforts are being made to stabilize the situation. Pakistan LNG Limited (PLL) announced its first spot purchase in over a year by awarding a tender to commodities trader Vitol for LNG cargo delivery in December.
Islamabad is set to negotiate a comprehensive plan for discounted Russian crude oil imports to diversify its energy sources at more affordable rates. An upcoming meeting during the Russian Energy Week 2023 from October 11-13 will see a Pakistani delegation led by the interim energy minister in Moscow.