Pakistan State Oil (PSO) has issued a tender seeking up to 1.67 million tonnes of fuel oil, for August to October delivery, steady to its previous tender volumes of 1.62 million tonnes for June to October, its website showed on Saturday.
PSO is seeking 20 high-sulphur cargoes of 65,000 tonnes each and another six low-sulphur parcels of 60,000 tonnes each, mainly for power-generation, via the tender, which closes on June 28 and will remain valid till July 2. It last bought 23 high-sulphur cargoes of 180-centistoke (cst) at premiums of $25.00-$29.00 a tonne to Middle East spot quotes on a cost-and-freight (C&F) Karachi basis from FAL Oil and Bakri, both Middle East-based suppliers as well as international players Trafigura and LUKOIL.
PSO also bought two low-sulphur parcels, of less than 1 percent sulphur content, from FAL and Russia's Gunvor at premiums of $80.00-$90.00 a tonne to Middle East spot quotes, C&F Karachi. The two Russian majors, both of whom did not have a major presence in the Middle East fuel oil market, had been first-time suppliers to PSO, while FAL Oil, a regular supplier for over 20 years, makes its return after being absent since the start of the year.
Pakistan's fuel oil requirements, mostly supplied from the Middle East, have grown steadily over the past three years, with import volumes this year, up to April, have averaging at 500,000-550,000 tonnes a month, steady to last year.
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