Pakistan will write to the United Arab Emirates this week in an effort to start the process of establishing an intergovernmental agreement (IGA). A government-to-government agreement is sought by the nation in order to import 1.5 million tonnes of gasoline annually.
The News said that Pakistan would import 30 cargoes, or 1.5 million tonnes, of motor spirit (Mogas), during a five- to eight-year period. Every month, the country would get two to three shipments from the gulf country.
The energy ministry has previously ratified the IGA with Oman, Qatar, Saudi Arabia, and a few other countries. UAE will be granted the identical deal. Once the agreement is reached, the two countries will start negotiating the GtG agreement for the import of petrol, crude oil, and jet fuel.
During the negotiations in Abu Dhabi held during the first week of the current month, senior representatives from both sides consented to sign a GtG agreement for the import of gasoline, crude oil, and jet fuel.
Pakistan would be able to have an adequate supply of petroleum products thanks to this.
After the IGA has been completed and signed, ADNOC (Abu Dhabi National Oil Company), on behalf of the UAE, and Pakistan State Oil (PSO), on behalf of Pakistan, will start talks for a commercial agreement on a going-to-market basis.
Pakistan wants both IGAs and business agreements inked before December 31, 2022 so that oil imports from the UAE might start on a GtG basis in January 2023.
According to the GtG agreement, PSO buys diesel from Kuwait Petroleum Company (KPC) and pays a hefty premium for gasoline bought on the open market, which is decided by the prices of products on the world market.