PD organizes sufficient fuel stock in accordance with July demand from the power sector

ISLAMABAD: The Petroleum Division (PD), in an effort to ensure the supply of the required amount of Residual Fuel Oil (RFO) to meet the country’s power generation needs, has arranged a sufficient stock of the commodity according to the demand placed by the electricity sector for July, it emerged on Sunday.

“Existing RFO stocks available from the oil industry (WTO [Oil Marketing Companies] and Refineries) as of 30/6/2022 are 277,000 MT [Metric Ton], while two RFO cargoes of 130,000 MT are currently out of port. The import of about 180,000 MT is scheduled for July 2022. Thus, the above arrangements are sufficient to meet the demand of 436,000 MT placed by Power Division in July 2022,” official sources told APP at current development of the oil sector.

They said that the PD is making every effort to provide the RFO for power generation with the timely placement of orders and advance payments by the respective power generation plants.

The sources said that Pakistan LNG Limited (LNG) has also launched a new tender for the purchase of 10 shipments of liquefied natural gas for deliveries in July and September aimed at smoothly meeting the country’s energy needs.

They said that Pakistan State Oil (PSO) and PLL were engaged in importing LNG into the country, adding that “under the LNG supply contracts signed with Qatar-Petroleum/Qatar Energy, PSO imports 5+2 LNG cargoes where the PLL ends up with an LNG supply contract with ENI Italy, the other i.e. M/s Gunvor prematurely terminated the contract in April 2022 following from a series of constant defects in the supply of cargoes since the year 2021. ”

As of July 22, the sources said the PSO managed to secure a shipment of LNG from Qatar scheduled for delivery in January 2023.

During the current mandate of the incumbent government, they informed that the spot purchase of LNG was carried out from April to June 2022 to improve the supply of RLNG to the electricity sector. “The cost of LNG spot purchases from May to June 2022 was $573 million.”

Although the PSO and PLL are facing a problem of huge claims against Sui Northern Gas Pipelines Limited (SNGPL) and electricity, the sources said that the supply of the electricity sector has been carried out to the extent possible in the face of increased demand.

“The PSO shortfall in LNG payments in June 2022 is Rs 285 billion; while PLL claims amount to Rs 119 billion.

To ensure zero load shedding during the Eid-ul-Fitr holiday, they said the supply of RLNG from fertilizers, compressed natural gas (CNG) and industry has been reduced to improve the supply of the electricity sector. CNG supply continued to remain reduced while captive power (export) was limited to 50% of their loads as of June 30, 2022. However, RLNG had been fully reduced for captive power (export and non-export ) for electricity during July 1-8, 2022.

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