Pakistan receives first shipment of Russian LPG: embassy

ISLAMABAD (Reuters) : Pakistan has received its first shipment of liquified petroleum gas (LPG) from Russia, Moscow’s embassy in Islamabad said on Tuesday, marking the South Asian country’s second major Russian energy purchase.

The shipment, which the embassy said was delivered with Iranian help, comes after Pakistan received its first-ever delivery of Russian crude under a deal struck between the two countries earlier this year.

In January 2023, a Russian delegation arrived in Islamabad for talks to finalise the deal. During the three-day meeting, the countries decided to address all technical issues — insurance, transportation and payment mechanisms — to sign an agreement by late March this year.

“After consensus on the technical specifications approved, the oil and gas trade transaction will be structured in a way it has a mutual economic benefit for both countries,” a joint statement issued by the two sides had then stated.

In a post on social media today, the Russian embassy said Russia delivered 100,000 metric tons to Pakistan through Iran’s Sarakhs Special Economic Zone.

The embassy said consultations on a second shipment were under way. It did not provide details on Iran’s involvement, and it was not immediately clear how much the LPG cost or if it was discounted.

Pakistan has said it had paid for the Russian crude in Chinese currency but the value of the deal was never disclosed.

Energy imports make up the majority of Pakistan’s external payments and discounted imports from Russia offer a respite as Islamabad faces an economic crisis with an acute balance of payments problem, risking a default on its external debt.