Pakistan and Russia in talks over LNG import deal as winter approaches

Pakistan’s energy security issues have compounded significantly as global LNG prices continue to rise, magnifying the country’s economic woes. The envoy said that Pakistan is currently focusing on its “immediate needs” for LNG. “We have established contact with the Russian side, and we are, of course, very much interested in the procurement of LNG. But that will come later. Our immediate need is for LNG,” he said.

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In recent months, multinational commodity trading companies like Gunvor Group have avoided/evaded booking LNG cargoes for Pakistan amid surging European gas prices and the rich countries get the most of it. “If the rich countries take away all the LNG, what is going to happen to us? The global energy market needs to be stabilized. You know sanctions are impacting us very badly,” the ambassador added.

He mentioned that an agreement on LNG supplies with Russia has yet to be reached as both parties only just made contact regarding this. Additionally, the diplomat stated that the sanctions imposed by the West will not impede economic relations between Pakistan and Russia. “We will try to bypass sanctions where they create problems,” he said.

Pakistan currently has no long-term LNG supplier, and spare supply in the market is rapidly dwindling due to increased demand from the European Union. The ambassador implored the international community to channel extra attention toward the issue.

In response to a query on whether Pakistan would consider buying gas from Russia via Iran, given that Moscow and Tehran have agreed to swap gas supplies, he gave an inconclusive response, but at the same time remarked “any such ideas will be welcome”.