Winter is coming...: Pakistan seeking 1.06m tons of oil

PSO importing high quantities to sustain power generation level.

SINGAPORE: Pakistan State Oil (PSO) is seeking a total of 1.06 million tons of gasoline and fuel oil for August to October arrival at the port of Karachi in a tender closing on July 24, the company said on its website. The Government of Pakistan is importing furnace oil to maintain the level of power generation and supply of compressed natural gas (CNG) in the coming winter season.

For gasoline, PSO is seeking one cargo for August, four for September and two for October, all of which come to 245,000 tons. Pakistan imported an average of 110,000 tons of 87-octane gasoline a month between January and July this year.

Pakistan recently bought another 35,000 tons of gasoline for mid-July to August arrival from Glencore at premiums of close to $128 a ton to the Middle East naphtha quotes. This was down from a record-high premium of $249.40 a ton it paid to Vitol for a mid-June cargo.

As for fuel oil, it is seeking eight 65,000-ton cargoes of high sulphur grade for the three-month period and three 55,000-ton of low sulphur grade for September to October. It has an outstanding tender to import two million ton for a 12-month period, likely to begin in August.

Experts say that a gas shortage of 1.5 billion cubic feet is expected the coming winter season and the situation can consequently affect the CNG supply and the production of electricity.

Published in The Express Tribune, July 12^th, 2012.