Pakistan has received its first batch of Liquefied Petroleum Gas (LPG) from Russia, marking Islamabad’s second major energy deal with Russia.
100,000 metric tons of LPG delivered through Iran’s Sarakhs Special Economic Zone. Negotiations for a possible second batch are currently underway.
Payments for Russian crude oil were previously made in Chinese currency, though the specific price of the deal was not disclosed.
This energy import is of importance to Pakistan, given its economic challenges, especially the poor balance of payments situation.
A Russian delegation visited Islamabad in January 2023 for talks to address technical concerns related to insurance, transportation and payment methods.
In the joint statement issued by Pakistan and Russia, the joint nature of international energy trade and regional partnership was emphasized.
Pakistan’s dependence on energy imports has been a significant component of its foreign payments, and subsidized imports from Russia provide relief as the country grapples with a severe balance of payments and economic crisis.
The arrival of Russian LPG represents a positive step in Pakistan’s energy diversification efforts and contributes to economic stability.
This is the second major energy deal between Pakistan and Russia after the delivery of Russian crude earlier in the year.
Oil and gas procurement has been a central issue in Pakistani politics, with former prime minister Imran Khan’s visit to Moscow in 2022 just ahead of Russia’s war on Ukraine a point of contention.
Pakistan usually gets 80 percent of its oil needs from traditional Gulf and Arab suppliers, particularly Saudi Arabia and the United Arab Emirates.
Additionally, Pakistan has signed a framework agreement with Azerbaijan for the purchase of liquefied natural gas (LNG) on flexible terms to meet domestic energy needs.