ISLAMABAD: The Petroleum Division (PD), in a bid to ensure the provision of the required quantity of Residual Fuel Oil (RFO) for meeting the country’s electricity generation needs, has arranged sufficient stock of the commodity as per the demand placed by the power sector for July, it emerged on Sunday.
“Existing RFO stocks available with the oil industry (OMCs [Oil Marketing Companies] and Refineries) as of 30/6/2022 are 277,000 MT [Metric Ton], whereas two RFO cargoes of 130,000MT are off the port at present. Import of around 180,000MT is planned for July 2022. Thus, the above arrangements are sufficient to meet the demand of 436,000 MT placed by Power Division during July 2022,” official sources privy to petroleum sector development told APP.
They said the PD was making all-out efforts to provide the RFO for electricity generation with the timely placement of orders and advance payments by respective power producing plants.
The sources said Pakistan LNG Limited (LNG) had also floated a new tender for procurement of 10 Liquefied Natural Gas cargoes to get deliveries during July and September aimed at meeting the country’s energy needs smoothly.
They said the Pakistan State Oil (PSO) and PLL were engaged in the import of LNG in the country, adding that “under the executed LNG supply contracts with Qatar-Petroleum/Qatar Energy, the PSO imports 5+2 LNG cargoes where the PLL is left with one LNG supply contract with ENI Italy as the other i.e. M/s Gunvor prematurely terminated the contract in April 2022 following a series of consistent default in the supply of cargoes since the year 2021.”
Starting from July 22, the sources said the PSO had managed to secure one LNG cargo from Qatar delivery of which was scheduled for January, 2023.
During the ongoing tenure of the incumbent government, they informed that the spot purchasing of LNG was made from April to June 2022 for enhanced RLNG supplies to the power sector. “The cost of LNG spot purchases during May to June 2022 was $573 million.”
Despite the PSO and PLL facing an issue of huge receivables towards Sui Northern Gas Pipelines Limited (SNGPL) and power, the sources said the supply to the power sector was made to the maximum extent possible against the increased demand.
“The PSO’s shortfall in LNG payments as of June 2022 is Rs 285 billion; whereas the PLL receivables stand at Rs 119 billion.”
To ensure zero load-shedding during the Eid-ul-Fitr holidays, they said the RLNG supply to fertilizer, Compressed Natural Gas (CNG) and industry was curtailed for enhanced supplies to the power sector. The CNG supply continued to remain curtailed whereas captive power (export) was restricted at 50% of their loads as of June 30, 2022. However, the RLNG had fully been curtailed for captive (export and non-export) for supply to power during July 1-8, 2022.