Islamabad, December 4, 2024 – Petroleum Minister Musadik Malik on Wednesday categorically denied reports suggesting that Pakistan and Russia had reached an agreement for the supply of discounted crude oil.
Addressing journalists, Malik stated, “The news of a deal with Russia on crude oil is absolutely baseless. There is no agreement with Russia regarding discounted crude oil.” His remarks followed widespread speculation that Pakistan had agreed to import crude oil from Russia at reduced rates under a government-to-government arrangement.
Rumors intensified after media reports suggested that during an Inter-Governmental Commission (IGC) meeting in Moscow, Pakistan and Russia had agreed to restart crude oil trade from January 2025, with one monthly shipment. Malik dismissed these claims, clarifying that Pakistan has not committed to purchasing crude oil cargoes from Russia. “Our priority is to establish a framework where consumers benefit from affordable oil, regardless of the supplier,” he said.
Turning to liquefied natural gas (LNG), Malik addressed the surplus in Pakistan’s reserves, highlighting that the country has deferred five LNG cargoes and is considering postponing an additional five. The surplus is attributed to reduced demand from power plants and the private sector’s reluctance to purchase LNG due to its high cost.
Discussing future energy plans, Malik assured that a comprehensive gas plan for the winter season would be finalized soon.
While refuting the Russian oil deal rumors, Malik emphasized Pakistan’s progress in fostering energy partnerships. He revealed that the country has signed Memorandums of Understanding (MoUs) worth $2.7 billion with Saudi Arabia, including agreements for investment in Pakistan’s energy and mineral sectors.
Seven of these MoUs have already materialized into agreements, with one Saudi company expressing interest in investing $1.7 billion in Pakistan Refinery Limited (PRL). Pakistan also plans to hold a roadshow in Saudi Arabia for establishing a Greenfield refinery, underscoring Saudi companies’ interest in Pakistan’s mineral sector.
Malik reiterated Pakistan’s commitment to diversifying its energy partnerships while refuting any misconceptions about its dealings with Russia. “Our goal is to create sustainable energy solutions that prioritize affordability and efficiency for our citizens,” he concluded.
While Russia remains a key player in global energy markets, Malik’s statement underscores Pakistan’s strategy to explore diverse partnerships and dispel misinformation about potential agreements with Moscow.