Pakistan places requirement for 830,000 MT of fuel oil
Pakistan State Oil (PSO) says it is seeking up to 830,000 metric tonnes (mt) of fuel oil as part of a 1.23 million mt requirement for oil products, representing its largest spot requirement since last August, Reuters reports.
The state-owned company is seeking up to 650,000 tonnes of high-sulfur fuel oil (HSFO), up to 180,000 tonnes of low-sulfur fuel oil, and up to 400,000 tonnes of gasoline for delivery over February, March, and April.
Industry sources said domestic demand for gasoline is rising as the nation faces a shortage of compressed natural gas, which many Pakistani power plants use to make electricity.
Pakistan's gas supply is under pressure due to low electricity prices and non-paying utility customers, which cause state utilities to lose money and keep them from paying power generators, ultimately meaning gas suppliers are not paid.
Earlier this month, the head of a Pakistan's Sui Northern Gas Pipelines Ltd. said the nation is taking steps to meet demand for gas, including opening its first liquefied natural gas (LNG) terminal within two months.
PSO was reported to have bought 300,000 tonnes of gasoline for January through March delivery from Trafigura and PetroChina, as well as 520,000 tonnes of HSFO for January and February from Swiss Singapore, Socar Trading, and Bakri.
The company also has term tenders pending to buy 1 million tonnes of HSFO for delivery from March through December.
