Pakistan on Monday inked a framework agreement with Azerbaijan for Liquified Natural Gas (LNG) procurement on flexible terms.
The agreement signed between Pakistan LNG Limited and Azeri Company SOCAR in Lahore today was witnessed by Prime Minister Shehbaz Sharif.
Speaking on the occasion, the PM said the tenure of this agreement is one year which is extendable to one more year.
He said under the agreement, Azerbaijan will offer one Cargo of LNG each month and it will be up to Pakistan to either accept the cargo or not. He said there will be no financial penalty if Pakistan does not accept the cargo.
The premier termed the agreement between Pakistan and Azerbaijan as a major milestone in the fraternal relations between the two states. He especially thanked the president of Azerbaijan for playing a pivotal role in this agreement.
In his remarks on the occasion, the ambassador of Azerbaijan said that both countries are deepening their cooperation in diverse fields including energy, defence, IT and transport.
He said the two sides are also negotiating a preferential trade agreement, expressing the confidence that they will be successful in this regard as well.