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Azerbaijan's SOCAR Ventures into LNG Trading in Singapore, Eyeing Asian Market Expansion
Baku/16.09.23/Turan: The State Oil Company of Azerbaijan (SOCAR) is set to venture into liquefied natural gas (LNG) trading in Singapore, signaling a strategic move to supply LNG shipments to the burgeoning Asian market.
Maryam Almaszade, CEO of SOCAR Trading, confirmed the move, highlighting the company's intention to establish a presence in the LNG market. SOCAR Trading has already taken steps to support this endeavor, including hiring an LNG trader and plans to expand its staff in Singapore. However, details regarding the source of the Azerbaijani company's LNG supply were not disclosed.
Almaszade indicated that SOCAR is also exploring the possibility of investing in LNG generation projects across various Asian countries. The move reflects the company's forward-looking approach to tap into the region's growing demand for natural gas.
The decision to enter the LNG trading sector comes amid expectations of lower LNG prices following record highs in 2022. Almaszade noted that the current price environment is conducive to increased spot purchases of gas, particularly by buyers in developing Asian nations.
It is noteworthy that SOCAR does not possess the means to liquefy natural gas on its own, lacking the necessary facilities. Nevertheless, this limitation has not deterred the Azerbaijani company from engaging in LNG trade. Previously, SOCAR successfully concluded an agreement with Pakistan LNG to supply LNG produced at Shell plants. Prior to that, the company employed a similar arrangement to sell liquefied methane to Malta.
SOCAR's entry into LNG trading in Singapore marks a significant step in its strategic diversification efforts and expansion into the thriving Asian energy market. As the company navigates this new terrain, it remains to be seen how it will position itself in the competitive LNG landscape.
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