Azerbaijan has said it is ready to supply liquefied natural gas to Pakistan, offering potential relief as the country faces mounting energy shortages amid global supply disruptions and declining domestic production.
Azerbaijan’s state energy company SOCAR confirmed that it can begin supplying LNG as soon as Islamabad formally places a request, under an existing framework agreement between SOCAR Trading and Pakistan LNG Limited signed in 2025.
“SOCAR is ready to provide LNG to Pakistan as soon as PLL submits a corresponding request,” the company said in response to queries.
However, the company did not specify whether Pakistan has already made such a request, when the first shipment could arrive, or the origin of the LNG cargoes to be supplied under the agreement.
Energy shortfall drives urgency
Pakistan’s move to secure additional LNG supplies comes at a time when the country is grappling with a widening energy gap. Officials have indicated that around 400 million cubic feet per day of additional gas is required to support power generation and reduce electricity shortfalls.
The crisis has been exacerbated by declining domestic gas production and volatility in global LNG markets, which have been disrupted by ongoing geopolitical tensions, including conflict in the Middle East affecting supply routes.
Pakistan relies heavily on imported LNG to meet its energy needs, particularly during peak demand periods. Any disruption in global supply chains can quickly translate into power shortages and load shedding across the country.
Qatar supply disruptions add pressure
The urgency to secure LNG from Azerbaijan has also been intensified by disruptions in supplies from Qatar, Pakistan’s primary LNG supplier.
Officials recently confirmed that multiple LNG cargoes from Qatar had been delayed or halted due to instability in the Strait of Hormuz, a critical shipping route for global energy supplies.
Pakistan has been in discussions with Qatar to secure additional cargoes once supply routes stabilise, but uncertainty remains over timelines.
In this context, Azerbaijan’s offer provides an alternative source that could help diversify Pakistan’s energy imports and reduce dependence on a single supplier.
Framework agreement enables fast procurement
The 2025 agreement between SOCAR and Pakistan LNG Limited allows for the direct purchase of LNG cargoes through an accelerated procedure, reducing the need for lengthy tender processes.
Analysts say this mechanism could prove crucial in enabling Pakistan to respond quickly to supply shortages and price fluctuations in international markets.
The arrangement builds on earlier energy cooperation between the two countries, with Azerbaijan previously offering regular LNG cargoes under government-to-government deals.
Challenges remain
Despite the potential relief, experts caution that LNG imports remain subject to global price volatility and logistical challenges.
Pakistan’s ability to secure shipments will depend on competitive pricing, availability of cargoes and stability in global supply routes.
At the same time, the country continues to face structural challenges in its energy sector, including circular debt and reliance on imported fuels.
Outlook
Officials say diversifying LNG sources is part of a broader strategy to strengthen energy security and ensure uninterrupted power supply.
While Azerbaijan’s offer signals a positive development, analysts note that long-term solutions will require investment in domestic energy production and alternative sources.
For now, the possibility of additional LNG supplies offers a critical buffer as Pakistan navigates a challenging energy landscape.
