Pakistan Approves Joint Venture Between PSO and Azerbaijan’s SOCAR for LNG Trading
Islamabad, The Gulf Observer: The Economic Coordination Committee (ECC) of the Cabinet of Pakistan has approved the establishment of an International Joint Trading Company in Singapore as a collaborative venture between Pakistan State Oil (PSO) and the State Oil Company of the Azerbaijan Republic (SOCAR).
According to Pakistani media reports on Saturday, the ECC has instructed the Ministry of Petroleum to conduct thorough due diligence on the investment process, with a specific focus on equity contributions. The ministry has also been directed to provide a timeline for the operational launch of the company.
During its meeting in Islamabad, chaired by Pakistan’s Federal Minister for Finance and Revenue, Muhammad Aurangzeb, the ECC granted formal approval for the incorporation of the International Joint Trading Company in Singapore by PSO and SOCAR. The Committee also emphasized the importance of setting a clear timeline for the company’s operationalization.
The ECC reiterated its directive for the Ministry of Petroleum to ensure that all necessary financial and regulatory aspects of the investment process are thoroughly reviewed. Media reports indicate that PSO is set to deposit $0.5 million in a Singaporean bank as a mandatory requirement for registering the company.
Government officials have confirmed that the trading company in Singapore will be established as a joint venture with SOCAR for purchasing liquefied natural gas (LNG) in the spot market. With SOCAR’s extensive experience and established presence in the global LNG sector, PSO is expected to leverage SOCAR’s international market connections to enhance its trading capabilities.
This strategic partnership aims to bolster Pakistan’s energy security by securing reliable LNG supplies through an internationally recognized trading hub.
