ISLAMABAD: Petroleum Minister Mossadegh Malik on Wednesday dismissed reports that Pakistan and Russia have reached an agreement on concessional supply of crude oil.
Speaking to reporters, Malik said: “The reports of an agreement with Russia on crude oil are completely false. There has been no agreement regarding such an agreement with Russia”.
The minister’s denial comes in the wake of rumors claiming that Islamabad has decided to import Russian crude oil at a discounted rate on Moscow’s offer.
Media reports said that during the Intergovernmental Commission (IGC) meeting in Moscow, the two countries had agreed to resume crude oil trade from January 2025 and that under a government-to-government arrangement Pakistan Will import one cargo per month.
However, clarifying the matter, the petroleum minister said the government is not buying any crude oil from Russia. “We are creating such a framework that the consumer gets cheap oil.”
Touching on the issue of liquefied natural gas (LNG), he said the country would not get any additional LNG cargo due to the existing surplus.
“Pakistan has already postponed five of its LNG cargoes and five additional cargoes are being considered for postponement,” he added.
Revealing the factors contributing to the LNG surplus, he cited reduced procurement by power plants and said the private sector was not buying LNG due to high prices.
He also said that the gas plan for winter will be ready in a few days.
Malik also revealed that Pakistan has signed a $2.7 billion MoU with Saudi Arabia. According to the Federal Minister, seven of these MoUs have already been converted into agreements.
He said that five Saudi companies participated in the road show organized by Pakistan Refinery Limited (PRL) in Saudi Arabia, one of which showed interest in investing $1.7 billion in PRL.
Malik further said that a road show will be held in Saudi Arabia soon to set up a new refinery in Pakistan.
He noted that the Ministry of Petroleum is currently working on a road show for the greenfield refinery project.
The minister also disclosed that an agreement has been reached with Saudi Arabia for the provision of trained personnel.
Additionally, Saudi companies have shown significant interest in investing in Pakistan’s mineral sector, he said.