Azerbaijan LNG procurement: Shahid Khaqan quit ECC membership in protest

• Khaqan is in favour of procuring LNG via private company.
• Politician opposes purchase via state-owned PLL.
• Petroleum Division declines preparing summary as per his directions.

Shahid Khaqan Abbasi, the former prime minister, has resigned from the Economic Coordination Committee (ECC) due to disagreement over the purchase of liquefied natural gas (LNG) from Azerbaijan through an intergovernmental approach, Geo News reported via sources.

The sources also disclosed that Abbasi expressed opposition to obtaining LNG from Azerbaijan via the state-owned Pakistan LNG Limited (PLL). Instead, he advocated for a private Pakistani company to handle the purchase of LNG cargo.

The senior Pakistan Muslim League-Nawaz (PML-N) politician held the viewpoint that a private entity should be responsible for procurement, as per the sources.

The Petroleum Division, as per the sources, had declined to prepare the required summary as directed by Abbasi.

The PML-N stalwart's resignation comes after Prime Minister Shehbaz Sharif's recent visit to Azerbaijan, during which discussions took place regarding enhanced cooperation in various sectors, including the supply of LNG.

Abbasi's resignation from the ECC highlights the diverging opinions within the government regarding the procurement of LNG from Azerbaijan.

In a meeting between the premier and Azerbaijani President Ilham Aliyev, it was agreed that Azerbaijan would assist Pakistan in meeting its energy needs by providing support in the oil and gas sector.

As per the agreement, Azerbaijan has committed to supplying LNG to Pakistan at a discounted price on a monthly basis. Earlier this week, the federal cabinet also approved the agreement.

“This is the second major achievement for Pakistan towards the fulfilment of energy needs after recently receiving the shipment of crude oil from Russia,” the communique read.

Under the agreement, Pakistan will receive one LNG cargo on concessional rates per month from next month. According to the PM Office, the premier has been working on the deal with Azerbaijan for the last six months.