PSO seeks 1.23m tons of oil products

Floats tender for largest spot requirement since last August.


Reuters January 14, 2013
PSO is seeking up to 650,000 tons of high-sulphur fuel oil (HSFO), up to 180,000 tons of low-sulphur fuel oil (LSFO) and up to 400,000 tons of gasoline. PHOTO: FILE

SINGAPORE: Pakistan State Oil (PSO) is seeking up to 1.23 million tons of oil products for delivery over February to April, its largest such spot requirement since August last year, industry sources said on Monday.

The state-owned firm is seeking up to 650,000 tons of high-sulphur fuel oil (HSFO), up to 180,000 tons of low-sulphur fuel oil (LSFO) and up to 400,000 tons of gasoline. The tender closes on January 28 and is valid until February 8.

PSO last bought 300,000 tons of gasoline for January to March delivery from Trafigura and PetroChina. Domestic demand for gasoline has been increasing due to a shortage of compressed natural gas, industry sources have said.

Pakistan faces a circular debt problem, in which state utilities lose money from non-paying consumers and low electricity prices and cannot pay power generators, who in turn cannot pay gas suppliers, which has caused a gas shortage.

PSO also last bought 520,000 tons of HSFO for January-February delivery from Swiss Singapore, Socar Trading and Bakri.

The company has two other term tenders pending to purchase a total of one million tons of HSFO for delivery between March-December. The tenders are closing on February 4, with offers to remain valid until March 8.

PSO cancelled its last tender to buy 55,000 tons of LSFO as no offers were received, traders said.

Published in The Express Tribune, January 15th, 2013.

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