KARACHI, July 30: Pakistan State Oil (PSO) has signed an agreement with the Water and Power Development Authority (Wapda) for handling and storage of fuel oil.

The power utility’s annual requirement of furnace oil ranges between 1.2-1.5 million tons per annum.

According to a press release, issued here on Tuesday, the signing ceremony took place at PSO House and was attended by General Manager (Industrial Consumer), PSO, and General Manager (Thermal) Operations, Wapda.

This agreement would facilitate the power utility to arrange a portion of its annual requirement through direct imports, and PSO would store the product in its storage tanks for onward transportation to its power stations located at Jamshoro, Guddu, Muzaffargarh, Faisalabad and Multan.

Under this arrangement, the authority would pay an agreed hospitality charge to PSO, which would provide a secured income for Pakistan’s largest oil marketing firm during the tenure of the agreement.

For additional quantities, the power utility would procure the product from PSO, which, having state-of-the-art infrastructure at the Zulfiqarabad Oil Terminal, is fully capable of meeting Wapda’s requirement over and above its directly-imported stored product at this terminal, further strengthening PSO’s earnings.—APP