Energy ministry ascertaining facts after Russian embassy says LPG delivered to Pakistan

Published September 27, 2023
Russia delivered the first shipment of LPG to Pakistan on Wednesday. — photo by Russian Embassy
Russia delivered the first shipment of LPG to Pakistan on Wednesday. — photo by Russian Embassy

The Ministry of Energy said on Wednesday that Islamabad was ascertaining facts after Russia’s embassy in the country tweeted that Moscow had made its first Liquefied Petroleum Gas (LPG) delivery to Pakistan.

The Russian embassy posted on social media site X, formerly Twitter, late on Tuesday that 100,000 tons of LPG had arrived in Pakistan through Iran’s Sarakhs Special Economic Zone, and consultations on a second shipment were underway.

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

Pakistan received its first delivery of Russian crude under a deal struck between the two countries earlier this year.

In January 2023, a Russian delegation had 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 statement sent to Reuters, the energy ministry said LPG being imported by private entities from Iran via a land route might be of Russian origin, adding that the government itself does not import the fuel.

The Russian embassy did not respond to an emailed request for comment.

Market, industry and official sources questioned the size of the consignment, however, saying such an amount of LPG was too much to have arrived by road and would have required around 4,000 containers to carry it.

An industry source in Moscow said LPG shipments from Russian plants, mainly owned by Gazprom, to Sarakhs between February and April totalled around 5,000 tonnes.

“We don’t know which part of these 5,000 tonnes were delivered from Sarakhs to Pakistan,” the source said.

At the time of the crude deal, Moscow said Islamabad would need to make any LPG purchases via the Russian private sector.

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

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

War & deception
Updated 09 Mar, 2026

War & deception

While there is little doubt that Iran is involved in many of the retaliatory attacks, the facts raise suspicions that another player may be at work.
The witness box
09 Mar, 2026

The witness box

IT is often the fear of the courtroom and what may transpire therein that drives many victims of crime, especially...
Asylum applications
09 Mar, 2026

Asylum applications

BRITAIN’S tough immigration posture has again drawn attention to the sharp rise in asylum claims by Pakistani...
Petrol shock
Updated 08 Mar, 2026

Petrol shock

With oil markets bracing for more volatility, more price shocks are inevitable in the coming weeks.
Women’s Day
08 Mar, 2026

Women’s Day

IT is a simple truth: societies progress when women are able to shape them. Yet the struggle for equality has never...
Rescuing hockey
08 Mar, 2026

Rescuing hockey

PAKISTAN hockey is back to where it should be. Years of misses came to an end on Friday with a long-awaited...