Pakistan plans to import up to one million tonnes of Russian oil every year

ISLAMABAD: Caretaker Energy Minister, Mohammad Ali, revealed that Pakistan is considering entering into a long-term agreement to purchase between 0.7 million and 1 million tonnes (equivalent to 20,000 barrels per day) of Russian oil annually.

Following the ban on Russian crude oil exports to European markets due to Moscow’s invasion of Ukraine, Pakistan has been exploring opportunities to buy the commodity at more affordable prices.

The first shipment of crude oil arrived in Pakistan in June this year, and negotiations for a second government-to-government cargo are currently underway. Notably, Pakistani refiner Cnergyico recently made history by importing the first-ever private-sector shipment of crude oil from Russia.

Pakistan has been grappling with high inflation and a foreign exchange crisis. Additionally, the country has faced challenges in procuring liquefied natural gas (LNG) at reasonable prices after Russia’s invasion of Ukraine last year led to record-high prices, resulting in widespread power outages.

Earlier this month, Pakistan LNG Limited (PLL), a government subsidiary responsible for procuring LNG from the international market, awarded a tender to commodities trader Vitol for the delivery of an LNG cargo in December.

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This marked Pakistan’s first spot purchase in over a year, indicating efforts to address its energy needs amid challenging circumstances.

In an attempt to diversify its energy supplies at more favourable rates, Islamabad was set to discuss a long-term programme for the import of discounted crude oil from Russia in early October.

A Pakistani delegation, led by the interim energy minister, was scheduled to participate in the Russian Energy Week 2023, held from October 11–13 at the Manege Central Exhibition Hall in the Russian capital.