Pakistan is expected to increase its fuel oil imports by 25 percent in its 2005-06 financial year as the country's robust growth is demanding more power, industry sources said on Friday.
Pakistan State Oil (PSO) is expected to import up to 1 million tonnes of fuel oil in the year to July 2006, up from 800,000 tonnes in the previous financial year, a company source said.
"We have alternative sources of power generation like hydro-electric power but with weather and climate conditions being unpredictable, fuel oil-powered plants remain the most reliable means of power generation in the country," the source said. Pakistan usually imports two monthly fuel oil cargoes, each of around 55,000 tonnes. Traders who frequently participate in PSO import tenders said they would not be surprised to see it import additional 2-3 cargoes more each month until July.
"They have invested and planned for alternative power generation projects, which haven't quite been successful, and that is why they continue to rely heavily on fuel oil for power generation needs," a Middle East-based senior trader said.