Agreement: PSO to buy 2.5m tons of gasoil from Kuwait
Finalises term contract with Kuwait Petroleum for 2015.
SINGAPORE:
Pakistan has finalised a gasoil supply deal for 2015 with Kuwait, which supplies 90% of its demand for the fuel it uses for electricity generation and transport.
Pakistan State Oil Company finalised the term contract with long-term supplier Kuwait Petroleum Corporation (KPC), at stable volumes of 2014, industry sources said on Wednesday. It will buy about 2.5 million tons a year of high sulphur gasoil from state company KPC, with a tolerance level of plus and minus 10%, one of the sources said.
The contract was finalised at a price similar to this year, the source added. PSO had sealed its 2014 gasoil term contract with KPC at a premium of between $1.80 and $1.90 a barrel above Middle East price quotes, on a delivered basis, traders said. Pakistan’s gasoil demand has become weak compared to the past few years, traders said.
PSO has also been lifting gasoil from local refineries, including Karachi-based Byco Industries which commissioned the country’s largest refinery earlier this year.
Separately, PSO has not finalised a jet fuel term contract with KPC, a source said, though the reason was not immediately clear.
Published in The Express Tribune, December 4th, 2014.
Pakistan has finalised a gasoil supply deal for 2015 with Kuwait, which supplies 90% of its demand for the fuel it uses for electricity generation and transport.
Pakistan State Oil Company finalised the term contract with long-term supplier Kuwait Petroleum Corporation (KPC), at stable volumes of 2014, industry sources said on Wednesday. It will buy about 2.5 million tons a year of high sulphur gasoil from state company KPC, with a tolerance level of plus and minus 10%, one of the sources said.
The contract was finalised at a price similar to this year, the source added. PSO had sealed its 2014 gasoil term contract with KPC at a premium of between $1.80 and $1.90 a barrel above Middle East price quotes, on a delivered basis, traders said. Pakistan’s gasoil demand has become weak compared to the past few years, traders said.
PSO has also been lifting gasoil from local refineries, including Karachi-based Byco Industries which commissioned the country’s largest refinery earlier this year.
Separately, PSO has not finalised a jet fuel term contract with KPC, a source said, though the reason was not immediately clear.
Published in The Express Tribune, December 4th, 2014.