Pakistan State Oil Company is seeking 1.82 million tonnes of oil products for delivery over May to September, as temperatures rise boosting demand for power generation fuels, industry sources said. The state-owned company is seeking 50,000 tonnes of gasoil, 10,000 tonnes of jet fuel, 1.16 million tonnes of fuel oil and 600,000 tonnes of gasoline, tender documents showed.
Pakistan's oil product requirements are spiking during the summer due to increasing temperatures where use of oil for power generation increases, an industry source familiar with Pakistan's imports said. "Temperature is hitting 40 degrees (Celsius) in major cities so demand from the power sector is increasing as use of air-conditioning increases," the source added.
While fuel oil is used in power plants, gasoline use in smaller power generators is also going up, the source added. Gasoil use in the agriculture sector is also increasing, the source said. Below-average rains usually curb hydropower generation and boosts agricultural demand for diesel to power irrigation systems.
PSO is seeking a prompt 0.5 percent sulphur gasoil cargo of 50,000 tonnes for delivery over May 22 to 24 after recently buying 240,000 tonnes of gasoil for late May to June delivery from trader BB Energy and Kuwait's Independent Petroleum Group (IPG), traders said. The company's spot gasoil requirement is above its long-standing term contract with Kuwait Petroleum Corp (KPC) which is unable to provide additional cargoes to Pakistan due to ongoing refinery issues, traders added.
In a separate tender, PSO is seeking 10,000 tonnes of jet fuel for delivery over June 20 to June 30. The tender closes on May 29 and is valid until June 5. It is also seeking 9 cargoes of 65,000 tonnes each of high sulphur fuel oil for delivery over June 21 to July 31 and 7 cargoes of 65,000 tonnes each for delivery over August 1 to September 10.
PSO is also seeking two cargoes of 60,000 tonnes each of low sulphur fuel oil for delivery over July 15 to September 15. The tender closes on May 29 and is valid until June 8. For gasoline, it amended an earlier tender, requesting for more volumes. PSO now needs 6 cargoes of 50,000 tonnes each of 87-octane gasoline for delivery over May 25 to June 30 and 6 cargoes of 50,000 tonnes each for delivery over July 1 to August 15. That tender closes on May 18 and is valid until May 23.
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